Thanks Charlie, Looks like Christmas will be coming early.
After months of scanty information from the operators of a blown-out well near Lost Hills, one of the companies involved has scheduled a technical presentation for investors at two Canadian locations Monday and Tuesday.The presentation will feature the first public discussion of how much
natural gas the wildcat well is currently producing. Production rates a matter of intense speculation among the Canadian oil and gas community which has been closely watching what could be a huge new natural gas reservoir in Kern County. According to sources close to the company, Hilton Petroleum officials will confirm that the well is producing 16 million cubic feet of natural gas per day, or the equivalent of 2,880 barrels of oil, as well as 24,000 barrels of water. The rate of natural gas flow also has been increasing daily, the sources said, and pressure remains very high and steady.Most of the natural gas is now being piped to a nearby oil field operated by Aera Energy LLC, which is using it to provide power for oil field
operations. Some gas still is being flared at the site. The water is also being piped to Aera for disposal. A reservoir geologist is expected to report on an analysis of where the large quantities of water coming from the well originate. Using temperature differences between the well bottom and the water, the geologist is expected to say it is originiating 2,000 feet below the bottom
of the well. That finding is significant because it indicates the reservoir is large
enough to hold substantial reserves of natural gas.Hilton is one of a consortium of seven Canadian and one American publically traded companies with an interest in the well. Private companies also hold a small ownership position. The operator, Calgary-based Elk Point Resources Inc., has kept a tight lid on information from the well in the past two months. The well blew out and caught fire Nov. 23 when a Nabors Drilling USA rig penetrated a rock formation at 17,640 feet. The fire extinguished itself
when water began to flow into the well bore about two weeks after the initial blowout.
Well control specialists tried to stop the flow from above ground for weeks, but gave up trying to on Feb. 12 after eight attempts.
A relief well now being drilled is nearing 14,000 feet in depth; the well is planned to intercept the bottom of the blown well around 17,640 feet.Three new wells are planned to try to repeat the apparent success at what is being called the "East Lost Hills" field. Elk Point will not be designated as the operator of those wells.
The company announced on March 8 that it will relinquish control of new exploration to Berkley Petroleum Corp.The first of the new wells, to be drilled in sequence, is expected to be started in mid-May. Hilton Petroleum president Brad Colby and an oil reservoir geologist hired by Hilton will present investors with a detailed analysis and answer questions in Vancouver on Monday and Calgary on Tuesday. |
