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Cons Beacon to begin drilling at San Joaquin project
2008-10-14 09:48 ET - News Release
Mr. Archie Boyce reports
CONSOLIDATED BEACON RESOURCES LTD. PREPARES TO DRILL IN SAN JOAQUIN
Consolidated Beacon Resources Ltd. has confirmed that, after the processing and interpretation of its recently acquired 3-D data, the operator has licensed the first two well locations in the 2008 drilling program north of Bakersfield, Calif. The locations for these two wells are being prepared for drilling as negotiations continue with the drilling contractor. The drilling program will commence immediately upon the availability of a suitable rig.
The company is encouraged with the developments for the San Joaquin project and is exploring opportunities in increasing its interest in the project and other potential projects in the San Joaquin basin. Consolidated Beacon continues to maintain and expand its land position in Southern California.
Consolidated Beacon's corporate headquarters has been moved to Vancouver, B.C., while the operating headquarters remains in Calgary, Alta. The company is also pleased to retain the services of Richard Hawes, PGeol, for the evaluation of potential oil and gas projects.
San Joaquin overview
Since March, 2006, Consolidated Beacon has been engaged in the business of acquiring medium and heavy oil prospects in the San Joaquin basin, California, in the San Joaquin East Side project joint venture, on and around the Bakersfield Arch.
The San Joaquin joint venture has focused its initial efforts on a 10-mile-wide, north-south exploration fairway between the Round Mountain and Mount Poso oil fields to the east, the Kern Front and Poso Creek oil fields to the west, and the Kern River oil field to the south.
Consolidated Beacon's partners in the San Joaquin JV are Daybreak Oil & Gas Inc., California Oil & Gas Corp., Calstar Oil & Gas Ltd., and the technical team that originated the project. A committee has been assembled from the various partners and is responsible for the overall management of the San Joaquin JV.
The San Joaquin basin of south-central California is targeted for oil exploration for several reasons which are:
1. The east slopes of the San Joaquin basin are a very prolific oil-prone area, with approximately 13,000 historic wells;
2. There has been no significant exploration on the eastern flanks of the San Joaquin basin since the 1960s;
3. Older production methods are still employed; newer production techniques should improve rate of production;
4. The basin is very close to major markets, and has infrastructure and services in place -- about 21 miles to three oil refineries, capacity 116,000 barrels of oil per day (bopd);
5. USGS recently (2007) estimated remaining undiscovered resources in the San Joaquin basin:
* 393 million barrels undiscovered oil;
* 1.7 trillion cubic feet undiscovered natural gas;
* 59 million barrels undiscovered natural gas liquids.
Private placement update
Consolidated Beacon Resources, on June 13, 2008, in Stockwatch, announced a non-brokered private placement of up to 20 million units at a price of five cents per unit for total proceeds of up to $1-million which will proceed accordingly. Ten per cent cash will be paid and 10 per cent agent's warrants will be issued in connection with the private placement, subject to the approval by the TSX Venture Exchange.
Up to 20 million units will be issued as non-flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the company at a price of 10 cents per share for the first year and 15 cents per share in the second year.
The proceeds of the private placement will be used for general working capital.
