Tartan Energy Says Silver Oak Well Disappointing

Tartan Energy revealed that the tests on the Silver Oak No. 1 well from the Lower Carneros interval determined the presence of oil and natural gas, but not at economic rates. The well is located in the company's Lost Hills prospect in Kern County, California. Production testing, therefore, will continue with the remaining upper intervals, including the Middle Carneros, Upper Carneros, Upper Temblor/Devil Water sands and the Fractured Shale/Porcelanite.

The Lower Carneros is the first interval that was able to be effectively tested in the Silver Oak No. 1 well as Tartan had an unsuccessful attempt to test the Bloemer and Belridge 64 intervals due to high pressures, poor cement bonding and mechanical problems. Although the results from this lower zone have not yielded economic production rates, Tartan is encouraged by the indications of trapped oil and natural gas and believes that commercial production from this interval will be found in a higher structural position. With the data generated to date from the Silver Oak No. 1 well, the geologic interpretation indicates that approximately 200 feet of structural elevation in all intervals can be gained at Tartan's proposed Silver Oak No. 2 location.

Although all of the intervals above the Lower Carneros recorded stronger oil and natural gas shows on the mud logs, testing in all potentially productive zones proceeded sequentially to accumulate a comprehensive database of geological and technical data to be utilized in the drilling of future wells. Testing of this well will continue and the results will be released when available.

Based on oil and natural gas mud log shows and the suite of electric logs, Tartan also announces that it has run casing in the Williamson II P1-11 well. Testing will begin as soon as the data processing and geologic interpretation of the Electro Micro Imager log is completed. This tool is a state of the art high resolution dip meter that yields not only the structural orientation of the formations but also gives a virtual image of the wellbore and the associated reservoir characteristics. Tartan is utilizing this tool to identify naturally fractured intervals to optimize the completion of the well.


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