California Oil & Gas Corp. Expands Focus to Include Louisiana
CALGARY, ALBERTA -- (MARKET WIRE) -- 06/08/06 -- California Oil & Gas Corp. (OTCBB: COGC) is pleased to announce that it has signed two Letters of Intent and intends to participate in two exploration and development projects in Louisiana. Both projects target deeper gas and condensate that lie beneath prolific shallow reservoirs within two large established fields that have produced for decades. These deeper horizons were not properly explored after the shallower discoveries were made.
The first letter of intent is with Vision Exploration LLC whereby California Oil & Gas can participate to a 40% interest in a prospect on the crest of a large, intensively faulted and fractured anticline in the middle of a prolific Fractured Lower Chalk trend in southern Louisiana. The targets exist below an older field that has produced 28 million barrels of oil from Tertiary formations. Both the over pressured Fractured Lower Chalk and the underlying Lower Tuscaloosa Massive Sand formations have been tested on the structure and proved to be hydrocarbon bearing, but at the time they were drilled (to depths of 13,000 to 16,000 feet), modern completion techniques were not available and those that were employed were not successful in putting these wells into production.
After completion of a formal agreement, planned activities on this prospect with Vision Exploration will involve acquiring a "state of the art" 3-D seismic survey of up to 35 square miles over the structure, followed by the re-drilling of a well drilled in 1982 which encountered what appear to be significant gas volumes in the Lower Tuscaloosa Massive Sand zone, but suffered mechanical failure and was abandoned after testing gas. Gas and condensate were also open hole drilllstem tested from the Fractured Lower Chalk in a crestal deep well over 40 years ago, but were never produced. Secondary targets include multiple Tertiary oil sands productive on the structure, within which additional reserves may be identified by the 3-D seismic in the form of previously unidentified, undrained fault traps.
The second letter of intent is an agreement with Daybreak Oil & Gas Ltd. whereby California Oil & Gas can participate to a 15% working interest in a well to be drilled by year end to test sands at the 10,000-11,000 ft level in a prospect in St. Landry Parish, Louisiana. The target location is defined by geology and 3-D seismic to be at the crest of a prolific, unexploited formation in a unitized field of over 4500 acres. This unitized field has produced over 1 TCFE of natural gas and natural gas liquids to date. Upon signature of formal binding agreements, which is expected to take place before June 30, 2006, California Oil & Gas will be part of a joint venture group that intends to drill the target location at the earliest, practical opportunity. The joint venture group intends to drill the well directionally to target over 20 BCF of marketable gas and over 750,000 barrels of condensate from an existing surface location which has installed separation facilities and a pipeline tie-in.
Other potential exists in this project as the joint venture partners have farmed in on the entire Unit. After an evaluation of the results from the first well, the group will evaluate other potential drilling opportunities, both shallower and deeper.
About California Oil & Gas Corp.:
California Oil and Gas Corporation is a publicly traded Oil and Gas Company with Assets in the San Joaquin Basin of California. The Company is focused on exploring High Yield Oil and Gas Prospects both Domestically and Internationally. The Company is targeting the acquisition of late stage exploration or early stage development projects around the globe. As the Company grows High Impact exploration plays will be added to accelerate growth.
On behalf of the Board
John G.F. McLeod, President
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that Nomad Hydrocarbons Ltd. can identify and negotiate leases for oil and gas properties in the San Joaquin Basin in California, that the Company can participate in those properties, that the prospects at both areas of interest in Louisiana prove to be lucrative, and that modern completion techniques can provide successful results on the target zones in the Lower Tuscaloosa Massive Sand wells. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
Contacts:
California Oil & Gas Corp.
John G.F. McLeod
President
(403) 261-1965
California Oil & Gas Cor |
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