“Although the Guinda Formation was water bearing, the well did encounter hydrocarbon shows in Cretaceous sediments shallower than the Guinda target,” Pacrim said.

This intersection appears to consist of a broad zone of gas in intercalated shales and sandstones, according to Pacrim. This discovery is in addition to the previously announced gas indications in the Princeton Gorge Formation.

“Pacrim Energy has decided to set casing down to this new Cretaceous zone and to proceed with flow testing of this and the Princeton Gorge Formation higher up the hole,” the company said.

There is limited information on the lower zone than there is on the Princeton Gorge Formation. But if testing of the gas indications in the lower Cretaceous zone prove successful, this could open a new focus of exploration in the general area where Pacrim Energy has more than 50,000 acres under lease, the company said.

“The significance of the hydrocarbon indications will not be known until testing operations are carried out utilising a service rig.A service rig is to be contracted to test the potential hydrocarbon bearing zones at Plymire 4-14 as soon as possible, thus allowing the drilling rig to continue drilling operations.”

The drilling rig is now being relocated to the third well site, Red Bluff, in line with the company’s 2005 exploration program. The Red Bluff Ranch site has been gravelled for weather proofing and the Red Bluff Ranch 1-16 well is expected to be spudded Monday December 5, California time.

Pacrim Energy has a 100% working interest in the Red Bluff Ranch 1-16 well, located within a major acreage position in this area of the Northern Sacramento Basin.