Sefton to Drill 4 New Wells in Tapia Canyon
Sefton announced a brief Operational Update and the execution of an agreement for the drilling of four new wells at Tapia Canyon oil field in California.
- Drilling of four new wells at Tapia Canyon scheduled to commence in mid-November and take approximately five weeks to complete.
- The new wells are expected to be producing in early 2012 which should allow oil production to rise by up to 75% to an estimated 240 barrels of oil per day
- Average Tapia 18°API crude purchase price of $107 per barrel received in October which represented a 24.4% premium to NYMEX
- Oil production in October at Tapia and Eureka fields was approximately 129 barrels of oil per day
- Dr. Farouq Ali is currently in the process of finalizing an interim report on the Tapia steamflood model
- Occidental Petroleum Corporation ("Occidental") via its subsidiary Vintage Production LLC has permitted a third well on its adjacent field to Tapia Canyon
Jim Ellerton, Executive Chairman, commented, "The drilling of these four wells is very much part of the plan to increase production and revenues from Tapia and this is in advance of us receiving the completed report from Dr. Farouq Ali which will give us a very strong indication of how we can further develop the field.
"It's also interesting to note that we are not alone in being confident about this area and its potential as a neighboring operator, Vintage Production, a subsidiary of Occidental, has recently moved a rig on location to drill a third well at their Wayside Canyon oil field which is immediately adjacent to Sefton's Tapia Canyon field."