Case Studies

Infill and Development Drilling Studies

Los Angeles Basin, California

Termo's review of the geologically complex area of the Aliso Canyon and Oat Mountain oil fields has resulted in the drilling of new wells over the past two years. Several pay zones were found in each well and are on production. Initial results have been very encouraging. New information from these wells is being incorporated into a geological interpretation to enable further development.

Termo is in the process of designing and permitting locations for up to 11 additional wells in these fields, including a new project area, North Aliso Canyon, for which we have begun the environmental study and review process. Permitting in Los Angeles County is a rigorous and time consuming process, and Termo has engaged the services of some of the best environmental and technical consultants in California to help us design and implement a sound and successful program for the area. We hope to begin drilling again in this area in the early winter of 2012.

Niobrara Shale Play, Mud Gulch Prospect, Sand Wash Basin

Moffat County, Colorado

Termo is currently seeking an additional partner to drill a horizontal Niobrara test well in the summer of 2012. We recently extended our leases on 2,500 acres in this area to ensure we have a foothold in this emerging resource play.

Shell, Quicksilver, and Axia are just some of the larger operators building sizeable positions around our lease block and testing the potential of the shale zone. Quicksilver in a spring 2011 news release announced that it had assembled almost 200,000 acres in the Sand Wash Basin and intends to drill six vertical test wells this summer.

According to E&P magazine, the Niobrara “remains a relatively unproven shale resource play in terms of its size and potential”(E&P Magazine, June 1, 2011 ‘Will Niobrara Turn Up Next Rockies Oil Boom’), but the interest by some of the smarter unconventional players in the business suggests that we will soon see this potential proven. Termo will continue to monitor the results of the other operators as we develop our plans for drilling this exciting play next summer.