Pacific Energy Reports Early Results of Squaw Canyon Evaluation

Pacific Energy & Mining Co. on Monday announced the initial results of its geological evaluation of the Squaw Canyon field located in San Juan County, Utah. The Squaw Canyon Field produces from the Desert Creek and Ismay formations at depths from 5320 feet in the Desert Creek and 5520 in the Ismay formation. The Squaw Canyon Federal 1-19 well tested at over 500 BOPD and was drilled pursuant to seismic studies.

Initial analysis indicates that the reservoir can be developed on the basis of 40 acre spacing. The company estimates well costs at between $1.0 to $1.1 million each, resulting in oil reserves for each offset well of 200,000 to 300,000 barrels of oil, with initial production rates of 200-300 barrels of oil per day per well. The company plans to initiate engineering studies to determine locations of new wells. The company estimates that combined reserves may be over 1 million barrels of oil.

Pacific Energy & Mining is a diversified company with oil and gas interests in Utah through its recent acquisition of properties in Grand County, Utah, a 7% working interest in the Brennan Bottoms Oil Field in Uintah County, Utah, and a 50% revenue interest in the Cisco Springs Oil Field in Grand County, Utah.

Additionally, the Company owns a 16.67% interest in Mar/Reg Investments, a General Partnership, through which it holds working interest in oil wells in Altamont Bluebell Oil Field in Utah and interest in numerous non-operated oil and gas wells in Oklahoma.

Pacific Energy also owns 80% of the outstanding shares of Pakistan Chrome Mines Ltd., a mining company with interests in over 34,000 acres of chromite and magnesite leases in Baluchistan, Pakistan. The leases mineral reserves contain an estimated 4 million tons of chromite and magnesite.