Termo Postpones Release of Environmental Impact Report for Project

January 7, 2016

After a thorough review of the current situation in Aliso Canyon, its potential effect on the community of Porter Ranch, the current economics of oil production and after discussions with Supervisor Antonovich, Councilman Englander and Porter Ranch Neighborhood Council leaders, The Termo Company (Termo) has decided to postpone the release of the Public Draft Environmental Impact Report (DEIR) for the North Aliso Canyon Project. Termo intends to resume the LA County EIR process sometime in the future.

Re-evaluation of Complex Geology in Existing Fields

Louisiana

The axiom “the best place to find oil is where it already exists” continues to be tested in Termo’s position in the Section 28 Field of Louisiana. Building off of the success of the Bull Moose Prospect in 2012 Penta Resources of Lafayette, Louisiana and Termo are once again partnering to test the axiom. This time the Keystone Prospect will drill through the complex faulting that can be found in these sub-surface isolated dome like structures that are characteristic of this part of Louisiana to test multiple oil and gas sands.

The test is a 13,500’ MD well on the north flank of Section 28 Field to recover reserves in the Stuart A-B, Bol mex 2 and Bol mex 4 Sands which produce in adjacent fault blocks. If successful in the development phase, an exploration tail could be drilled after protection pipe is set to test the Nonion struma and Nodosaria B Sands. The trap is a fault wedge between Faults A and B-1. The deeper exploration tail crosses Fault B-1 testing a fault wedge between Faults A and B. The Keystone East Prospect will be tested with a new directional-well (1200 ft. kick) from the Termo SMLC 16 location. Both the Keystone East and Keystone Prospects are undrilled fault blocks on the prolific north flank of Section 28 Field. Fault A, the key trapping fault, is controlled by eight subsurface fault picks. Fault B-1, the complimenting trapping fault, is controlled by four subsurface points. Both faults are seen on the reprocessed 3D data. The updip wells from Faults B and B-1 have under-produced indicating these wells are fault separated from downdip reserves. Amoco permitted but never drilled two wells which would have tested the Keystone East Prospect. The Bol mex 4 Sand has large downdip oil production from a stratigraphic reservoir. A substantial upside lies in the Nodosaria B Sand which is interpreted to be a turtle structure with a thick amplitude anomaly.

The estimated reserves associated with a successful test like this are significant. If the entirety of the project is successful, Penta’s analysis suggests up to 5 MMBO and 29 BCF. The affirmation of a correct interpretation of reprocessed 3D seismic data can boost confidence in further analysis of other overlooked or under-produced hydrocarbon zones. Other benefits of this kind of in-field drilling and re-evaluation are the opportunity to greatly lessen the environmental impact of new drilling by utilizing single existing locations for multiple production targets. This is important when considering the cost of construction and reclamation in the marsh ecology in this part of Louisiana and it provides Termo and Penta a great opportunity to balance the need for domestic hydrocarbon energy production and environmental protection.

More information about this project is available by contacting Termo or Penta Resources.

See Our Case Studies