GRAYLING EXPLORATION / CHAR DEVELOPMENT PROJECT
The Grayling/Char Project is part of a potential 6 to 9 well drilling program located in Kern County California, 80 miles north of Los Angeles. The Char Development is a low risk development well and the Grayling a moderate risk exploration opportunity to encounter oil and gas bearing sands capable of large volumes. Potential project reserves are estimated at 580,000 to 2.439 million barrels of oil. The wells will be drilled through the Etchegoin and Reef Ridge Sands with the primary objective being the Miocene Stevens Sands to a proposed depth of approximately 12,000'. The wells will be drilled in a highly prolific and mature drilling province with all infrastructure in place. High quality 3-D seismic data defines the Prospects.
Wells cost approximately $3MM to drill and complete. It takes a total of about 60 days to drill and test a well. Oil in this area sells for over $100 per barrel. Initial production rates can vary from 100 to 500 BOPD (Barrels of Oil Per Day).
PROSPECT AREA MAP
GRAYLING//CHAR TERM SUMMARY
Drilling Contractors: Ensign Drilling / Irani Engineering
Compl Contractor: Irani Engineering
Drilling Depth: 12,000 Feet to Stevens Sandstone
G G & L: $200,000
Well Spacing: 40 acre spacing per well
Delivered W.I: 90% Prospect Generator seeks 10% *BPO & 15% Back-in *APO
Net Revenue Interest: 75% N.R.I. - Balance Mineral Owners and ORRI = 25%
Prospect Objectives: Stevens, Reef Ridge and Etchegoin
Seismic: High Quality 3-D
Description: Normal pressure, channel sands.
Oil Reserves Per Well 300,000 – 500,000 Barrels Oil Per Well
· BPO (Before Payout)
· APO ( After Payout)
· NRI (Net Revenue Interest)