California: Neon spuds two more wells at Paloma

Neon Energy Ltd., Perth, has spudded the Paloma Deep-2 well and is preparing to spud the Paloma-3 shallow appraisal well in Paloma field in Kern County, Calif., in the San Joaquin basin.

Meanwhile, the Paloma Deep-1 well, which encountered the hydrocarbon pay zones to be appraised by the two new wells, continues to produce from the Lower Antelope member of the Miocene Monterey shale at 35-120 b/d, 10-50% oil, while cleaning up (OGJ Online, Jan. 11, 2012).

Paloma Deep-2, to go to 13,600 ft in the Fruitvale formation with a larger hole diameter than Paloma Deep-1, will also obtain cores in the Lower Antelope, Lower Stevens, and Fruitvale shale reservoirs.

Potential was identified in Paloma Deep-1 for bypassed pay in the upper section between 2,500 ft and 6,000 ft. Paloma-3 will target the Tulare formation in a small four-way dip closure and potential gas zones in stratigraphic traps of the Mya and Etchegoin formations. Projected TD is 6,000 ft.

Neon operates the wells with a minimum 75% working interest in the project. Solimar Energy Ltd., Perth, is participating with up to a 25% working interest pending completion of the farmout agreement in relation to the Paloma Deep-1 well, under which Solimar is paying a promoted share of the dry hole and completion/testing costs up to an agreed cost cap.

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