Last week, Salinas announced that the operator had recovered 32-degree API crude oil from this lower zone at a depth of between 12,860 feet and 13,020 feet (3919 and 3968m). However, it says this zone is under-pressured, possibly due to regional production from the reservoir, and will most likely need artificial lift for commercial flow rates.
The second zone identified for testing is directly above the tested interval, between 12,700 feet and 12,840 feet. It is beneath what Salinas interprets to be the main sand zone – between 12,490 feet and 12,690 feet – which electric logs indicate contains oil and has better reservoir qualities than either of the lower two zones.
In addition, the uppermost zone of interest, between 12,140 feet and 12,400 feet, has been identified by electric logs as containing porous intervals also likely to contain oil.
If completed for commercial production, Salinas will earn 50% of revenue from the well.
The North Yowlumne prospect has potential to contain more than 100 million barrels of recoverable oil, and is immediately adjacent to the 113 million bbl Yowlumne oil field.
Partners in the South Buena Vista project are (after payout): Ivanhoe Energy (56.25%), Salinas Energy (25%), Statesman Exploration (12.5%), NEG (6.25% and operator of the initial exploration well).