Two of the horizontal wells will be drilled from the central pad, while the two others will be drilled from separate pads to produce reserves that are otherwise inaccessible.

Each production well is expected to take about two weeks to drill at a cost of about US750,000 - to be funded out of Salinas' cash reserves.

Salinas holds a 100% stake in the North San Ardo field - a heavy oil development in the Salinas Basin.