The company’s 60% owned subsidiary, Gas Fields, is earning up to 33.33% (20% net) in the Tulainyo Gas Project in the Sacramento Basin, California via a joint venture.
Importantly, independent risk assessment considers the Tulainyo Project to host up to 6 trillion cubic feet (TCF) of recoverable gas, with a potential in-ground value of up to US$6 billion at current prices.
The Tulainyo Gas Project is a joint venture along with the operator, California Resources Production Corporation, and Cirque Resources LP, a private company based in Denver, Colorado.
Flow test program expected to commence early this year
The joint venture recently drilled the Tulainyo 2-7 gas appraisal well to a planned total depth of 5,710 feet (1,737 metres).
Multiple potential sandstone gas reservoirs were indicated based on the interpretation of drill cuttings, gas shows and wireline log data.
The joint venture partners consider that the sands penetrated are as good as expected pre drill.
The current operations are running seven inch production casing, protecting the indicated gas zones for later testing.
Once casing has been run, the well will be suspended and the Ensign Rig 587 demobilised from the site.
A flow test program is expected to commence early this year, using specialised testing rig and equipment to be brought to the site.