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Pacific Energy Signs Farmout for Horizontal Drilling
| Quelle: Pacific Energy & Mining Company
RENO, NV--(Marketwire - July 27, 2009) - Pacific Energy & Mining Company (PINKSHEETS : PEMC ) today announced the execution of a farmout agreement with Mar/Reg Oil
Company, for the drilling of a 2,500-foot lateral in the Federal 4-26 well
in Tin Cup Mesa Oil Field, San Juan County, Utah. The oil field is
located in the south-central Paradox Basin, 21 miles southeast of Blanding,
Utah
PEMC intends to commence drilling of the Federal 4-26 well during the
second half of August 2009. The field was discovered by Marathon Oil
Company during 1981, and it has produced over 2.6 million barrels of oil
and over 3 billion cubic feet of natural gas since its discovery.
Production is from a Northwest Southeast trending 120-foot thick carbonate
buildup in the Pennsylvanian Upper Ismay formation.
Geological and Engineering analysis of the field has shown that a
horizontal well drilled in Section 26 would intersect the fracture system
that has not been drained by the vertically drilled wells.
The 4-26 well, when first drilled as a vertical well, produced 310 barrels
of oil per day. The Company anticipates greater production from the
horizontal lateral. It has produced over 156,000 barrels of oil and 355
million cubic feet of natural gas. Engineering analysis has shown that the
well did not efficiently drain the northern portion of the oil field.
Horizontal Wells drilled in similar conditions have had initial productions
from 1,000 to 2,000 barrels of oil per day. There is no assurance that the
4-26 well will do the same.
For further information on the Tin Cup Mesa prospect visit www.pemc.us
About PEMC
The Company through a General Partnership holds working interest in oil
wells in Cedar Rim Oil Field in Utah and working interest in numerous
non-operated oil and gas wells in Oklahoma. Additionally PEMC owns
interests in oil and gas fields in Utah.
Two of PEMC Directors have interests in the Tin Cup Mesa Oil Field.
Disclaimer
The foregoing contains forward-looking information within the meaning of
The Private Securities Litigation Act of 1995. Such forward-looking
statements involve certain risks and uncertainties. The actual results may
differ materially from such forward-looking statements. The company does
not undertake to publicly update or revise its forward-looking statements
even if experience or further changes make it clear that any projected
results (expressed or implied) will not be realized.