Latest jobsAustralian explorer Salinas Energy is set to spud the first well of its appraisal and development programme on the onshore North San Ardo oilfield in the Salinas basin, California.
The Lombardi 27-1 well is the first of a four to five well programme that targets recoverable reserves of about 10 million barrels of heavy oil.
It will be drilled by the Kenai Rig 4, which is expected to spud the well by Friday this week.
These wells seek to better define the limits of the well and may bring the field into production by the first quarter of 2007.
Two horizontal production wells are planned with production stimulated by injection of steam.
North San Ardo was abandoned after minimal production over 20 years ago during a period of low oil prices. It was mapped as an extension of the producing San Ardo heavy oilfield immediately to the south which has produced a total of 480 million barrels of oil.
Salinas has a 100% stake in the North San Ardo oilfield.