California's Paris Valley gets new operator

Nov. 24, 2009
Salinas Energy Ltd., Perth, is to become operator of the Paris Valley heavy oil field redevelopment project in coastal California under an agreement with Nations Petroleum USA LLC set to close about Nov. 30.

By OGJ editors
HOUSTON, Nov. 24
-- Salinas Energy Ltd., Perth, is to become operator of the Paris Valley heavy oil field redevelopment project in coastal California under an agreement with Nations Petroleum USA LLC set to close about Nov. 30.

Salinas Energy estimates that the 3,000-acre project area could have 132 million bbl of oil in place in two compartments and that a third compartment could provide exploration upside. Nations Petroleum retains an overriding royalty on future production.

The company plans to drill the first vertical appraisal well in December to collect samples of oil and reservoir that are currently unavailable to provide more accurate estimates of the field’s potential. Salinas Energy has all necessary approvals for up to five more wells from two locations.

The field, in the Salinas basin south of King City, contains 10-11° gravity oil in Miocene Ansberry sandstone at 800 ft. Husky Oil Ltd. successfully tested steam injection in the mid-1970s, but low oil prices precluded economic development. It is likely that the field development plan will incorporate secondary recovery such as steam injection from start-up of production.

Central Paris Valley has 24 vertical wells and an estimated 18 million bbl of oil in place, and North Paris Valley has 10 vertical wells and 114 million bbl in place. Some 43 million bbl could be considered recoverable in those two areas. South Paris Valley is a large fault-bounded, three-way dip closure updip from a 1948 well that cut a 15-ft oil column.

Salinas Energy also operates the producing North Ardo oil field with 100% working interest.