Here is some more information I've found that reinforces the value of this play.
Zodiac & Bayswater Seek Partner for Light Oil Resource Plays in California
By Sanjay on September 20, 2011 in Deals in Play
Zodiac Exploration Inc. (“Zodiac”) and Bayswater Exploration & Production, LLC (“Bayswater”) seek a JV partner to accelerate development of their light oil resource plays in the San Joaquin basin of California. Scotia Waterous Inc. have been retained as exclusive financial advisor in this regard.
Zodiac and Bayswater possess sizeable land positions in the Kings and Kern counties, California, with immense resource potential across multiple horizons including Whepley, Vaqueros, Kreyenhagen and Monterey.
These are early stage tight oil resource plays analogous to the Alberta Bakken in 2010 and the Eagle Ford Shale in 2008. There are conventional drilling locations to complement and de-risk the development of new plays.
Zodiac and Bayswater have concentrated acreage positions at ~86,000 and ~17,000 acres respectively.
An initial 2-well test program was drilled to depths of ~15,000 feet and these results are available.
Sproule U.S. Limited estimates OOIP, targeting only a portion of plays over a portion of acreage, at over 4 billion gross barrels.
The pay thickness of reservoirs is sandwiched between source rocks.
Infrastructure is in place.
Derrick Valuation
Derrick values the package at $52 million based on the value of the acreage and assuming a 50-50 JV. The acreage metrics used are from a recent similar deal involving San Joaquin basin acreage recorded and analysed in Derrick’s E&P Transactions Database (see table below). Click under deal link to get to the detailed deal sheet.
Announce Date Buyers Sellers Acreage metric ($/Acre) Deal Link
08-29-2011 Individual Venoco 1000 View
