At Jack Hamar 1-1, the Monterey Deep Oil diagnostic fraccing program has been successful, according to Nuenco managing director Anthony Kain.

“The intention on this well is to stimulate multiple intervals through formation fracturing guided by a diagnostic program of ‘mini fracs’ to determine how and where this formation may be stimulated,” Kain said.

“After the successful completion of this diagnostic program, a full fracture stimulation program in the Monterey will begin in the first week of December. Getting good results from this fracture stimulation program is important in view of the potential oil reserves in the Monterey which have increased substantially with the recent expansion of the South East Lost Hills project.”

Once fraccing of Jack Hamar 1-1 has been completed, the Jack Hamar 2-1 shallow gas well is to be tested. This directional well, drilled from the same pad as Jack Hamar 1-1, is 2.4km northwest of the section 13 wells and a good result from testing at this site (where the strongest gas shows have been recorded) will have an important impact on reserve calculations for these blocks, according to Nuenco.

Orchard and Nuenco also aim to run the 2-13 and 3-13 wells into the Jack Hamar pipeline as soon as it is connected.

“An extended test of these wells along with results from 2-1 will allow reservoir engineers to begin constructing an independent view on the reserves contained in the South East Lost Hills blocks,” Kain said.

“To do that the engineers need to see gas flows over a longer time period to determine decline rates and recovery. With this data they can then estimate reserves in place for a particular reservoir, then extrapolate the data across Nuenco’s acreage.”

To get an accurate reflection of the actual potential of the South East Lost Hills acreage, most of the targets so far identified will have to be tested. This will be done once Jack Hamar 2-1 has been tested, according to Kain.

Orchard is now neotiating a gas sales contract with major Californian producer and consumer AERA for Jack Hamar gas. A 20,000,000 cubic foot a day pipeline has nearly been completed.

“Meetings are planned on site next week between AERA and Orchard to begin to coordinate the connection of this pipeline with the AERA gas sales line,” Kain said.

Participants in the Jack Hamar Gas Field Project are Nuenco LLC 50% and Orchard Petroleum Inc 50% (operator). Participants in the Deeper Jack Hamar Monterey Oil and Gas Field Project are Nuenco LLC 37.5% and Orchard Petroleum Inc 62.5% (operator).