Project Profile
Value: Undisclosed
Location: Santa Barbara County, California, USA
Reserves: Six million barrels of oil in 2P reserves and 20.8 million barrels of oil
Start-up Year: -
The Zaca Field Extension project, located in Santa Barbara County, California, was acquired by Underground Energy in November 2011 as part of a transaction with a private company. The assets acquired include one producing test well (15-25 bopd), existing 2D seismic coverage and numerous identified drilling locations. Targets include the Monterey Shale (analogous to Asphaltea). Drilling commenced at the Zaca project in late February 2012. The historical production from the 61 vertical wells previously drilled into the western part of the existing Zaca field, utilising primary recovery techniques only, has been robust. These wells had average initial production (IP) rates in excess of 200 bopd and have produced more than 500,000 barrels of oil per well. Even the last 18 of these vertical wells, which were infill wells drilled in pressure depleted reservoirs in the 1970’s through the 1980’s, had average IP rates in excess of 70 bopd and have produced in excess of 375,000 barrels of oil per well. GLJ Petroleum Consultants Ltd. (GLJ) of Calgary evaluated the field and provide consultancy support. Prospective and contingent resources on each of the company’s prospects were not evaluated by GLJ, although the company intends to have such an evaluation completed till the end of 2012. Management estimates that there are six million barrels of oil in 2P reserves and 20.8 million barrels of oil in prospective resources at the Zaca Extension Project.
On May 31, 2012 Underground Energy Corp signed purchase and sale agreements for the acquisition of certain minority interests in petroleum leases at its Zaca Field Extension Project as well as at its Burrel, Buttonwillow and Devil\'s Den properties. As a result of this acquisition, Underground will increase its working interest at the Zaca Field Extension Project from 80% to 96.7%, its working interest at Buttonwillow from 80% to 93.3%, its working interest at Burrel from 80% to 88.167% and its working interest at Devil\'s Den from 92.9% to 98.2%. In addition, the company\'s overall acreage in California will increase from 39,481 net acres to 42,020 net acres and, in particular, the company\'s acreage at the Zaca Field Extension Project will increase to 11,811 net acres.
Operator:
Underground Energy: Operator with 25% interest
AmRich Energy: 75% working interest
Contractors:
GLJ Petroleum Consultants: Consultancy contract