Ivanhoe Completes Initial North Yowlumne Tests

Ivanhoe Energy has completed initial testing of the lower zones at the 13,000-foot North Yowlumne 1-26 exploration well.

The company said that the test program is proceeding from the lowest zone to the highest zone in the well. Zones of interest were encountered between 12,000 and 13,000 feet.

Light 36-degree API oil and minor associated gas has been tested from the zone between 12,490 and 12,690 feet. A flow rate has yet to be confirmed, and preparations are underway to install an artificial lift system to enable the well to be put on a sustained production test before testing the final upper zone of interest (12,140 to 12,400 feet). Ivanhoe noted the upper zone had the best log characteristics in the well.

The company said the lower zones at 12,860 to 13,020 feet and 12,700 to 12,840 feet were previously tested, with a minimal amount of light 32-degree API oil recovered. The lower zones will likely require pumping if commercial flow rates are to be achieved.

Depending on permitting and equipment availability, Ivanhoe expects that it will take at least one week before the pump-assisted production test commences. Oil from all of the lower zones will be commingled for the pump test.

Ivanhoe developed the 8,000-acre North Yowlumne prospect after a 38-square-mile 3-D seismic survey indicated that the Yowlumne Sand extends onto the company's block in the southern San Joaquin Basin area. This new North Yowlumne well is approximately two miles north of the oil-producing Yowlumne Field in Kern County, in Southern California's oil-prolific San Joaquin Valley. The Yowlumne Field was discovered in 1974 and has produced more than 110 million barrels of oil and 96 bcf of gas from the Yowlumne (Stevens) Sand.

Ivanhoe Energy farmed out 87.5 percent of this exploration prospect and resulting well. If the well is successful the farmin parties earn a 43.75-percent interest. Following payout of the first producing well, Ivanhoe Energy will have a 56.25-percent working interest in the block and will be the operator for any subsequent operations.

Partners in the North Yowlumne prospect are Ivanhoe Energy with 56.25 percent; NEG (operator) with 6.25 percent; Salinas Energy with 25 percent; and Statesman Exploration with 12.5 percent.