Several things attracted me to this story, not least of which I enjoyed many wonderful weekend outings with some nice southern California women -- ah, but that was a long time ago, in another galaxy, far, far away.
Underground Energy Corp., Santa Barbara, Calif., will attempt to complete the Monterey shale at the Chamberlin 3-2 well on the 7,750-acre Chamberlin lease in its Zaca field extension project in Santa Barbara County, Calif.Some data points:
- Depth: 7,685 feet (somewhat shallower than the Bakken, in general)
- Cost: budgeted for $2.4 million (well below the $7 million to $10 million for Bakken wells)
- Payzone in offset well: 1,700 feet (huge); more than 1,200 feet of continuous Monterey oil
- Typical payzone in this area: 1,100 feet (huge -- the middle Bakken, I believe, is 50 - 100 feet)
- Original Zaca field: 10-acre spacing; 61 wells
- Original Zaca field: average IP -- 200 bopd; EURs > 540,000
A bit of competition for the Bakken, it appears, and suggests why some operators, like OXY say they have better prospects in California than North Dakota.
Note: I have no formal training in the oil and gas industry; no formal training in geology; I don't follow California oil industry; and I may have misread the story. Check out the link if you plan to make any investment decisions after reading this post. I am well-known to make errors. This is presented, again, for my benefit and benefit of readers to try to sort out the Bakken.
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A Note for the Granddaughters
And speaking of long ago, far away:
Have fun Oxy getting those resources out of the ground in the land of fruits and nuts. When and if that happens then you will be right about who has the best oil and gas play.
ReplyDeleteI'm not holding out any hope that will happen anytime soon.
Based on OXY's record in North Dakota, I can't disagree.
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