Norex's Seismic Data Confirms First Drill Target in California
Northern Explorations ("Norex") has provided updated details of the Company's California Gas Project, located approximately 20 miles south of the city of Sacramento along the Upper Cretaceous Winters "Eastside Stratigraphic Trend" of the southern Sacramento Valley.
The operator has just completed a detailed 3D Seismic reprocessing of data and has now identified the first drilling target, a highly prospective, relatively low risk gas pool with multiple objectives from sands that have a combined estimated total of 3.6 BCF gas from Winters sandstones. Winters Sands are one of the most prolific gas reservoirs in the Sacramento Valley, accounting for over 400 BCF in historical production. Analog producers have been identified as the Merritt Island (5.6 BCF) and Snodgrass Slough (4.6 BCF) fields.
The first well of the program is planned to target the new 3D seismic data that indicates over 50 feet of net pay at a depth of 7,800 feet. Should the target prove to be 100% gas filled and is commercially viable, this first well has a projected initial production rate (I.P.R.) of 2,000 to 4,000 MCF per day.
The Company has been informed that drilling at the test well is to commence in approximately 30 to 45 days depending on rig availability. If a commercial well is achieved, Norex aims to benefit from what would be a very short pay out period for all prospect fees, seismic, drilling and pipeline tie-in costs as an existing pipeline is less than 1/2 mile from the site which delivers gas to PG&E Citygate, a major player in the California gas business.