The company expects to begin operations at the field with the spudding of the Guijarral Hills-1 well in August, once a drilling rig becomes available.

The proposed well will target a stratigraphic trap formed by an up-dip permeability barrier in the Eocene Gatchell sandstone on the plunge of the Coalinga Anticline, the company added.

The well will also target the overlaying Leda sands as a secondary objective.

The company said both targeted sands have produced hydrocarbons in the area.

The Guijarral Hills field was developed in the 1950s, has produced more than 50 million barrels of oil and has a P50 estimate of 5MMbbl.

Initial flow rates of previous wells on the field have been variable but are estimated at 300-500 barrels per day.

According to the Nuenco, the operator is looking at a possible field extension as an analysis indicates the field has not been fully developed.

The Guijarral Hills-1 well will be drilled to a depth of 12,000 feet.