This well was drilled by the Nahabedian Exploration Group and affiliates in July 2002 and was plugged and abandoned.
Upon reviewing the data as part of this new exploration thrust, Pacrim Energy decided to test some zones in McClure 5-7, which is believed to be located at the edge of the structure and had a chance of flowing gas.
“The test did encounter some gas which is good news for future exploration in the immediate area, however it was not a commercial success,” Pacrim said.
“The testing of this well was high risk for a relatively small outlay and was not part of the original program. The company has determined to plug and abandon McClure 5-7. Focus will now revert to the main thrust of drilling exploration wells that are more optimally located.”
Pacrim Energy is awaiting the arrival of the drilling rig to start work on the primary target at the McClure Ranch Project, which was the original plan under the company’s exploration program. Well sites have been prepared in readiness for the drilling rig which is expected on site prior to the end of the month.
The Company is also completing site preparations at its Plymire Road Project including partial weatherproofing of the drill site. Plymire will be the second target area and will represent the focus of exploration once work has been completed at the McClure Ranch Project.
Pacrim Energy said it had a 100% working interest in the exploration drilling
“The wells are to be located in an area proven to be prospective for gas with ready infrastructure that, in the event of drilling success, would enable the company to take advantage of the buoyant US gas prices,” Pacrim said.
Pacrim has estimated Plymire Road reserves at 100 billion cubic feet, McClure Ranch at 75bcf and Home Ranch at 50bcf.
In August, Pacrim finalised an oil and gas acquisition agreement with the Nahabedian Exploration Group covering blocks in the Northern Sacramento Basin. Nahabedian has a track record of working with Australian companies in California and operates projects in partnership with Nuenco and Orchard Petroleum.
Pacrim’s initial three-well program was to start in September but the availability of drilling rigs is very restricted in California.
