California

By OGJ editors
HOUSTON, Mar. 8 – Neon Energy Ltd., Perth, plans further cyclic steam trials, including one on a horizontal well, in North San Ardo heavy oil field in California’s Salinas basin.

The field averaged 262 b/d in the 6 months ended Dec. 31, 2009. A cyclic steam trial at the Lombardi 1-27 vertical well more than doubled the well’s production rate as the result of the amount of steam injection, steam quality, soak time, and pump-off rate. The test cost less than $75,000, already recovered from the incremental production.

Neon Energy upgraded processing facilities and addressed former water disposal limitations. The short-term focus is to hike production by drilling a well in the central part of the field.