"The Citrus prospect is one of many prospects in our San Joaquin portfolio we intend to drill over the next several months," said David Martin, Ivanhoe Chairman. "This particular prospect exploits our unique acreage position to extend an existing producing field and we plan to use horizontal drilling technology to more effectively develop this reservoir. A horizontal well can expose up to ten times the amount of reservoir and result in higher production volumes for less than twice the cost of drilling a vertical well."
The Citrus prospect will test the southern extension of the currently producing Lost Hills field, which is unrelated to the deep-gas prospect at Northwest Lost Hills located 15 miles to the north. The company has acquired an interest in over 1,700 potentially productive acres offsetting Lost Hills field where there has been recent development drilling. Ivanhoe will be the operator and owns interests ranging between 83% and 100% in the prospect leases.
The Company expects to have the well completed and tested by year-end. The horizontal drilling techniques planned for the well at Citrus are similar to those that have successfully developed in other Antelope Shale reservoirs in the nearby North Shafter and Rose fields. If further development is warranted, the company estimates that there could be up to 20 additional horizontal drilling locations at Citrus. Ivanhoe may also plan future wells to test deeper formations.
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