ABN 22 009 171 046
SALE OF 50% INTEREST IN CALIFORNIAN PROJECT FOR US$600,000 |
Quest Petroleum is pleased to advise it has completed the sale of its 50% interest in the Buena Vista Project acreage for US$600,000 cash, which comprises 8,500 leasehold acres and 3,000 option acres. This project area is located on the southern edge of the Buena Vista field in Kern County, California and the sale represents an effective price of US$70 per leased acre. The Company continues to hold a 50% working interest in ~135,000 acres (~84,000 being leased acres) in the San Joaquin acreage portfolio and is continuing to explore its options to unlock the value held in this remaining acreage.
The Company?s San Joaquin acreage is located near a number of giant (>100 mmbo) and supergiant (>1 bbo) fields, which provide immediate analog information to the prospects and leads. The acreage blocks group into three logical project areas:
1) Northern Block, located near giant Coalinga and Kettleman North Dome oilfields,
2) Central Block, near giant Lost Hills and supergiant South Belridge fields, and
3) Southern Block, next to Yowlumne oilfields.
Northern Block
In the northern acreage block, both structural and stratigraphic plays are present. Although some small four-way closures have been identified, the largest untested structural traps are in the footwalls to the major thrust-bounded anticlines. A number of untested stratigraphic pinchouts have been identified on the flanks of structural noses. Clear channel-forms, also untested, can be seen. Major reservoir targets are Lower Miocene Temblor deltaic sands and Eocene through Miocene channelized turbidites. Secondary targets exist in fractured siliceous shales. Cretaceous-age sandstones are virtually unexplored in the area.
The northern blocks include the Company?s acreage that surrounds the Kettleman North Dome and the Company?s Kreyenhagen heavy oil project (10% working interest).
Central Block
Quest?s leases on the south plunge of Lost Hills anticline lie immediately south of (and downdip from) the currently active Monterey shale oil development. Recent drilling has proven the presence of multiple shallow gas zones and production from the underlying Monterey shales at depths ranging from 7,000 to 9,000 feet. The leases could support up to fifty Monterey horizontal wells, to develop as much as 25 mmboe. Additional leases on the flank of the giant South Belridge oil field offer an opportunity to produce oil from the Monterey Antelope Shale formation. A recent vertical well drilled close to Quests? lease line confirmed production. Production from the same regional intervals in the southeast margin of Sth Belridge demonstrates better rates and lower declines from horizontal wells.
Southern Block
Quest?s lease block in the southern San Joaquin basin covers the heart of the Maricopa depocenter, an area of great accumulations of Miocene-aged basin floor turbidite sand fans. Subsequent structural growth on the flanks of the depocenter has added a structural component to what would otherwise be a purely stratigraphic play. Quests prospects lie downdip of Yowlumne field, which has produced over 120 mmbo from Miocene Stevens sands. A series of coalescing fans collectively identified as Stevens are mapped from 3D seismic surveys. Targets range in depth from 10,000 to 16,000 feet.
On behalf of the Board of Directors
For further information on the Company, please visit our website:
www.qpnl.com.au
For further information contact:
Mark Freeman Executive Director | Brett Mitchell
Director / Company Secretary | |