California: Neon spuds two more wells at Paloma

By OGJ editors

Neon Energy Ltd., Perth, has spudded the Paloma Deep-2 well and is preparing to spud the Paloma-3 shallow appraisal well in Paloma field in Kern County, Calif., in the San Joaquin basin.

Meanwhile, the Paloma Deep-1 well, which encountered the hydrocarbon pay zones to be appraised by the two new wells, continues to produce from the Lower Antelope member of the Miocene Monterey shale at 35-120 b/d, 10-50% oil, while cleaning up (OGJ Online, Jan. 11, 2012).

Paloma Deep-2, to go to 13,600 ft in the Fruitvale formation with a larger hole diameter than Paloma Deep-1, will also obtain cores in the Lower Antelope, Lower Stevens, and Fruitvale shale reservoirs.

Potential was identified in Paloma Deep-1 for bypassed pay in the upper section between 2,500 ft and 6,000 ft. Paloma-3 will target the Tulare formation in a small four-way dip closure and potential gas zones in stratigraphic traps of the Mya and Etchegoin formations. Projected TD is 6,000 ft.

Neon operates the wells with a minimum 75% working interest in the project. Solimar Energy Ltd., Perth, is participating with up to a 25% working interest pending completion of the farmout agreement in relation to the Paloma Deep-1 well, under which Solimar is paying a promoted share of the dry hole and completion/testing costs up to an agreed cost cap.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...