Black Rock Acquires Stake in San Joaquin Basin Acreage
Black Rock Oil & Gas has entered into a farm-in agreement with a private North American company to earn a majority interest in and operatorship of oil and gas leases covering approximately 3,000 acres in the eastern San Joaquin Basin, California. Under the terms of the agreement, the Company has the right to acquire additional acreage in the immediate area, after technical review.
Black Rock will pay the cost of the acquisition of a 3D seismic program, shot in the last few weeks, and plans to drill three wells over the remainder of 2005 to test 3 separate plays; two oil and one gas.
One of the oil plays will be tested via a well drilled up-dip from production and is estimated to contain 1 million bbls of probable reserves. The gas prospect will test relatively shallow seismic amplitude anomalies that will be further delineated by a new 3D seismic survey.
The upside in the program is an oil play that can be considered a bypassed pay from deeper production. Wells have been drilled through the target reservoir to tap deeper production excluded from the farm-in agreement. The nearby North Shafter oil field, an analogue to this target reservoir, currently produces over 2,500 barrels of oil per day.
"This project again meets our strategic criteria of near-producing assets in proven hydrocarbon provinces," commented Ivan Burgess, Managing Director of Black Rock Oil and Gas.
"The Miocene Monterey Formation of the San Joaquin Basin is a prolific source rock
and the bypassed pay inherently is a lower-risk prospect. If this year's drilling
program is successful, we will evaluate a longer term, multi-year development
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