California Oil & Gas: Krotz Springs Well Hits High-pressure Gas Pay

California Oil & Gas Corp. announced the Haas-Hirsch (Krotz Springs) Unit Well #60 has already encountered what appear to be multiple commercial zones above the primary target horizon. These zones have produced elsewhere in the Unit, but are not depleted at this location. The main target zone, the 3rd Cockfield Sand has yet to be penetrated.

The well was spudded by the operator, Daybreak Oil & Gas Inc. on January 8, 2007 as a directional well toward a 3rd Cockfield Sand target identified from 3-D seismic about 150 feet updip from the KSU#40 well which commenced production at 8 MMCFD and which produced 10 BCF before bottom water encroachment. Intermediate 9 5/8" casing was set at 9,810 feet, and while drilling ahead toward the 3rd Cockfield sand, two potentially commercial zones were encountered. While preparing to run a liner to isolate these over pressured zones, the drill string became stuck and the lower section could not be retrieved. After cementing the original borehole, the well was side tracked in the open hole section and the operator Is planning to run a 7" liner over the potentially productive intervals. Plans are then to drill ahead, penetrate and log the 3rd Cockfield sand, and set a production liner prior to testing.

John McLeod, President of California Oil & Gas stated "It is exciting to have encountered these zones with apparently virgin pressure. It is a plus that these zones are present and appear to be commercial. They have been produced elsewhere in the Krotz Springs Unit, but we were not sure whether or not they had been depleted at this location. In fact, one Unit well with similar log characteristics has produced 36 BCF from a correlative zone. While the presence of these zones has increased the degree of difficulty in drilling, they bode well for both the productivity and reserve potential of this well."

COGC has a 25% Working Interest (BPO) in this Haas-Hirsch Unit Well # 60, which is being drilled directionally from the KSU #8 surface location. As such, facilities are available at the surface location which should expedite the tie-in and production of this well when completed and proved productive.


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