The partners have agreed to acquire all of Matris Exploration Company’s 25% working interest covered under an outstanding farmout agreement at Southeast Lost Hills, where both the Jack Hamar 1-1 well and the recently announced Jack Hamar 1-13 well are located.
The deal is subject to necessary consents and board approvals with a purchase price of US$1,59 million plus a royalty interest, said Orchard executive chairman Steve Graves
“The chance to increase our working interest in this highly prospective area right before an active drilling program is an attractive opportunity that Orchard believes holds a very large potential, Graves said.
"We remain fully committed to developing both the Monterey formation and pursuing the untested shallow potential at Southeast Lost Hills.”
At the same time there have been gas shows from the Jack Hamar 1-13 well from 1,995 feet through to 2,150 feet, according to Nuenco managing director Anthony Kain.
“At this early stage we are making good progress on this well and the gas shows from the initial zone are similar to the initial gas shows in Jack Hamar 1-1," Kain said.
"These results are subject to further testing but are very encouraging at this point in time.”
Interests in the project after the Matris acquisition are Nahabedian Exploration Company (operator) 25%, Orchard Petroleum 37.5% and Nuenco NL 37.5%.
