Salinas to double North San Ardo harvest
Australian-listed Salinas Energy said it plans to start drilling an
additional four horizontal production wells at the onshore North San Ardo
oilfield in California that will double current production levels.
The outfit currently produces around 500 barrels per day from the field, but
expects the additional wells to boost production to over 1000 bpd by July,
Salinas’ finance director, Dougal Ferguson told Upstreamonline today.
In the first week of April, two horizontal wells will be drilled from the
central pad with two additional production wells drilled from separate pads
designed to produce reserves which cannot be accessed from the central pad.
These pads are being built with flow lines installed to ensure early cash
flow from the wells.
The North San Ardo field holds 15 million barrels of oil in place, 5.5
million of which are recoverable, based on proved and probable reserves,
said Ferguson.
North San Ardo, which lies in the Salinas basin between San Francisco and
Los Angeles, 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 holds 1.5 billion
barrels of oil in place.
“With oil prices at record highs, Salinas is focused on maximising revenue
and value from our first oil production asset to underpin a growing work
programme on our existing and new business projects,” said Salinas’ managing
director, John Begg.
Salinas has a 100% stake in the North San Ardo oilfield.
26 March 2008 04:59 GMT
| last updated:
26 March 2008 05:15 GMT
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