OPL has increased its share of production revenue in the McCormack Road 1-15 gas well from 25% to 50% with commercial production expected within the next 30 days.

In addition, OPL has also increased its working interest in the Northwest Rio Vista prospect area surrounding the 1-15 discovery well, from 25% to 37.5%. Both areas are part of the Southern Sacramento Basin of California and are covered by 3-D seismic.

The increase in working interests was acquired from the Nahabedian Exploration Group, in exchange for certain exploration credits OPL has had with NEG, hence there is no cash outlay for the transaction.

Executive chairman Steve Graves said, “Since our entry into California one of our major target areas has been the very prolific gas producing area of Rio Vista. The increase in production revenue from the 1-15 gas well along with the strategically placed acreage gives us a two-fold benefit.

“In addition, under OPL assumptions the revenue base from just this one well will deliver over $1 million per year which is expected to more than cover our overheads.”

“Appraisal drilling opportunities currently being investigated in the area may lead to additional drilling on the discovery. At $6.50 gas prices, this provides a very large upside,” said Graves.

The participants in North West Rio Vista area are OPL 37.5%, Nahabedian Exploration Group 37.5% and Matris Exploration Group 25%.