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Sun Cal Energy Receives Schlumberger Analysis of SE Jonah Prospect
Feb 28, 2008 09:00:16 (ET)
SAN FRANCISCO, Feb 28, 2008 (BUSINESS WIRE) -- Sun Cal Energy Inc. (SCEY, Trade ), an energy exploration company focused in the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, the Breton Sound of Louisiana and the Green River Basin of Wyoming, is pleased to announce the completion of the SE Jonah Prospect reserve analysis and drilling program by Schlumberger Data and Consulting Services, an industry-leading oilfield service provider.
Schlumberger was contracted to evaluate Sun Cal's SE Jonah Prospect which covers 2,478 acres in Sublette County, Wyoming. The evaluation includes: a review of existing seismic data over the prospect for recommendations on possible purchases and prospect feasibility; a data audit of available public data; an evaluation of nearby industry activity; a review of production from surrounding fields to determine potential production rates; original gas-in-place (OGIP) and estimated ultimate recoveries (EUR); and an assessment of possible drilling location based on geological, geophysical and engineering data. The evaluation also includes recommendations for additional data purchase and acquisition, including seismic.
According to the completed evaluation of the SE Jonah Prospect by Schlumberger, which was based on available geological, petrophysical, and reservoir engineering data, Schlumberger quotes a base EUR estimate of 292.4 Billion standard cubic feet (Bscf) and a high side EUR potential of 1,280.8 Bscf of natural gas on the prospect.
The report noted that from well data an apparent SW-NE trending anticlinal nose trends through the middle of the Teakettle unit at the top of the Fort Union Coal Zone and Lance Formations, and that this feature is noted to be most prominent in the Sublette Flat #1 well and Sagebrush Federal #3-8 well; both located within the northeastern part of the unit and on Sun Cal's acreage. Seismic data is recommended to better delineate the anticlinal nose. The report also states that the primary reservoir interval, the Lance Formation, exceeds 1,000 feet in Sun Cal's SE Jonah Prospect and that a similar fluvial environment of channel sandstones with interbedded floodplain shales, which occurs at Jonah Field, is expected in the prospect.
Based on the results of the evaluation, Schlumberger asserted a "good possibility of productive hydrocarbons being encountered in the prospect and the surrounding area," and has recommended the acquisition of additional seismic data over the prospect to allow for greater subsurface control and better positioning of drilling locations.
Lewis Dillman, CEO of Sun Cal Energy, commented on the results of the evaluation, stating: "We are extremely pleased with the results of the Schlumberger evaluation. The potential reserve estimations have now increased to a potential 1.28TCF, which is a significant increase from the previously prepared independent report. We view this even more positively than we had initially hoped, and we are very excited to continue our progress towards the development of the SE Jonah Prospect."
The OGIP and EUR on a "per well basis" were also calculated for the prospect and included low, base and high cases (P10, P50, P90) by varying the net sand thickness and recovery factor. As stated by Schlumberger, the values used for the recovery factor were conservative as gas reservoirs with no or low liquid production can commonly have recovery factors in excess of 80%. An excerpt from the report on a "per well basis" is as follows:
Case Net Sand ft Drainage OGIP Recovery EUR MMscf
acres MMscf Factor
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Low - 20 acre 560 20 949 42% 399
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Base - 20 acre 1,000 20 3,572 57% 2,036
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High - 20 acre 1,720 20 12,912 70% 9,038
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"These results validate the potential the SE Jonah Prospect represents to our shareholders," stated Lewis Dillman. "We expect to continue to undertake tangible steps to develop this prospect, and in particular explore opportunities to enter into strategic partnerships with key major producers in the area. Furthermore, these results add momentum to our desire to develop the West Jonah prospect nearby and seek additional acreage in the area that would provide our shareholders greater exposure to one of North America's fastest growing natural gas fields."
About the Jonah Prospect
The Jonah Field and the Pinedale Anticline are acknowledged as the premier gas fields in the Rocky Mountains. These fields are located in Wyoming's Greater Green River Basin. According to the Wyoming State Geological Survey, the Greater Green River Basin contains approximately 26 TCF of natural gas which is the largest reserve in the State. The Jonah Field is estimated to contain 7 to 10 TCF of Natural Gas, which currently produces from more than 500 wells.
Sun Cal Energy Inc. has a 100% working interest in 6,000 acres of leases in the Jonah Field region of Wyoming - the second largest proven gas reserve in the United States. Sun Cal's Prospects are identified as South Jonah, which consists of 2,477.68 acres and West Jonah, consisting of 3,546.89 acres. Most of the surrounding acreage is currently held by EnCana and Yates Petroleum, with BP and Chevron/Texaco also holding significant positions.
About Schlumberger
Schlumberger Limited (SLB, Trade ) is the world's leading oilfield services company supplying technology, information solutions and integrated project management that optimize reservoir performance for customers working in the oil and gas industry. Founded in 1926, today the company employs more than 80,000 people of over 140 nationalities working in approximately 80 countries.
Further Information
Shareholders and prospective investors are encouraged to visit Sun Cal Energy's website: www.suncaloil.com and download Sun Cal Energy's Investor Summary. Please feel free to call investor relations toll-free at 1-800-798-8334 to receive a full corporate investor's package.
About Sun Cal Energy Inc.
Sun Cal Energy Inc. is a publicly traded independent oil and gas exploration company with headquarters in Calgary, Alberta, and an operational office in San Francisco, California. Sun Cal Energy aims to secure and develop a portfolio of oil and gas properties throughout America. The company is strategically placed in the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, the Breton Sound of Louisiana, and the Green River Basin of Wyoming. Sun Cal Energy Inc. trades under the ticker symbol: SCEY - "Sun Cal Energy Inc. - Providing Energy Solutions to America."
On behalf of the Board
AI
