North Aliso Canyon Project Update

November 3, 2014

Termo is continuing its collaboration and work with the Los Angeles Department of Regional Planning on our proposed twelve well expansion of our existing Aliso Canyon operations (eighteen wells) in northern Los Angeles County. At this time, the County is beginning to draft the Initial Study as part of the CEQA process.

The Project website has been updated and contains a wealth of information. Those interested are encouraged to find out more at www.northalisoproject.com  

Termo has been actively engaged in meeting with community stakeholders and as a result of these discussion and the ideas generated, we made several changes to the Project Description. To date, Termo has spent $330,000 on permit related studies and engineering.

Celebrating our Independence

July 4, 2014

Termo wishes everyone a Happy Independence Day!  We are proud to work with our partners in the pursuit of Energy Independence for the United States by exploring for and producing our domestic oil and natural gas resources.  We will doggedly pursue this path forward as we seek a more economically sustainable and energy independent America.

Visit Termo at NAPE 2014

January 31, 2014

See us at the annual Winter NAPE next week in Houston - Booth 4559.  We look forward to catching up with partners and friends.

Termo and our Industry Loses a Longtime Friend, Harry Ptasynski

December 23, 2013

On December 19th Termo lost a longtime friend and partner, Harry Ptasynski of Casper, Wyoming.  Harry was a world class geologist, having entered the business after graduating from Stanford in 1950.  Harry loved geology and the oil business, and often remarked that he felt he never worked a day in his life after leaving school - it was that much fun! He was a respected member of many geological and producers’ associations, an active officer of the Independent Petroleum Association of America and a much admired member of the US independent oil and gas industry.

Harry was a partner in most of Termo’s projects of the last 25 years.  He would support our project analysis with his own geological work and he was not shy about expressing his interpretations. His desire was to help us better understand the various properties in ways that could lead to developing increased production.

We met Harry about 30 years ago when Termo drilled an exploratory well in North Los Angeles County.  This was the North Placerita Prospect as developed by Henry Walrond (another great geologist) from Bakersfield.  Henry brought Harry to the project as a partner for us.  The noncommercial well encountered a series of problems.  A second well was drilled, which was a dry hole.  Through all these issues Harry was always supportive and stood with us without complaint.  Following this difficult start, Harry was convinced of our integrity and desire to succeed with our projects.  He expressed interest in joining in our acquisitions and we started acquiring properties from some of the majors and he willing joined in, typically taking about 5% of each acquisition.  While not a huge percentage, his geologic support and reviews made him an invaluable partner.

In a recent letter to Termo, Harry shared some of his thoughts about being involved with us over the years: “…in my 60 years of being in the oil business, I have never enjoyed a relationship with any partner as much as I have the one with you and Termo over the past more than 20 years.”  Harry really had a lot of fun working with Termo and we really enjoyed his friendship.  He was a true gentleman and we will miss him dearly.

Operations Updates

October 8, 2013

We have had a busy summer at Termo!  As we enter fall, we have had some successes and are preparing ourselves for increased activity in 2014.  Some recent highlights:

In our home state we just finished drilling the Wiggins #1 well in Fresno County on our Nebraska Avenue Project. This is the first exploratory well Termo has operated in a number of years in California. The evaluation by electric logs was positive and while drilling we encountered some good oil and gas shows. We will be making a completion attempt in the next week or so. If the well is successful, we could be starting a development program early next year.

Our North Aliso Canyon Project permit package has been submitted to Los Angeles County Dept. of Planning and we are working with them to achieve approval for the project as designed.  This will allow up to 12 wells on three pads.

In Colorado, we joined Noble Energy in the drilling of two horizontal wells in Weld County. Our interest is about 10% in each well. The wells have been drilled and frac'd. We are waiting on flow test information, but are optimistic. Noble is one of the premier operators in the area and appears to have mastered horizontal drilling in the Denver Basin.

We are participating with Axia Energy of Denver in Moffat County in a horizontal well to test the Niobrara formation. We are a partnered with Axia in about 15,000 acres, so good results with the current well will be positive for Termo.

We are moving forward at an active pace in Louisiana.  The recently drilled St. Martin Land Company #26 well continues to produce at 150 barrels per day. The #27 was producing about 15 Barrels per day and is being stimulated in an attempt to enhance production. If this effort fails, we will move up hole and test some additional intervals that appear productive. Also, in the Section 28 field, we are joining Houston Energy as to a 30% interest in drilling a step out well on the edge of the field.

We are committed to participate in several other exploratory projects in South Louisiana. These projects are in Cameron, Allen, and Acadia Parishes. These will be drilled at or before year end.  We had a failure in the recently drilled Ezra Brooks Prospect in Saint James Parish.

Moving to Wyoming we are committed to drill and operate the Rogers Mountain Prospect in Fremont County.  This is a true "wild cat" and we are pushing to drill before severe winter weather hits the area.  Unfortunately, at this time permitting is stopped as a result of the Federal Government shutdown.