The Perth-based company said it had cleaned-up and completed the Lombardi-5-27H well for production, and the rig was completing the third horizontal well, Lombardi-9-27H.

“Commissioning of the second stage of the NSA development, with five wells – two vertical and three horizontal – producing through the permanent production facilities is scheduled for [next Thursday],” the company said.

“Net production is then expected to increase to about 1000 barrels of oil per day, up from current levels of 250 to 350 barrels of oil per day.”

Elsewhere in the region, Salinas has successfully drilled and cased its Capps-1-22H well, at its 100%-owned McCool Ranch project, with a 776-foot horizontal section in the reservoir.

The well will be completed using the workover rig currently at North San Ardo and then production tested.

At North Yowlumne, the company said drilling is about to restart on the current well, after a 31-foot core was cut in response to oil shows seen in the secondary objective.

“A preliminary assessment of the core does not indicate recovery of reservoir quality rocks,” said Salinas, which has a 25% stake in the project area.

“The well has yet to penetrate to the primary Stevens Sandstone reservoir objective as mapped by Salinas.”

The company is also earning 50% of the Paris Valley project, which has been subject to detailed geological, economic and reservoir modeling.

Based on the results, Salinas plans to start a seismic and drilling program in 2008 to prove up 25 million barrels of recoverable oil at the field.

Salinas will fund and carry out the work program to earn a 50% interest in the project.