California: Neon secures new lease at North San Ardo

Neon Energy Ltd., Perth, has secured a 100% working interest in a lease adjacent to North San Ardo field in California’s Salinas basin that the company said may contain an extension of the field.

The Glau Lease lies between the company’s Lombardi lease, on which the field is located, and its Pancho Rico lease. Glau is lightly explored with one stratigraphic test well and limited seismic. The strat well confirmed the presence of movable oil in the reservoir interval that produces at North San Ardo, and the available seismic suggests that the field may extend into Glau.

The eastern part of Glau has additional exploration leads, and as the petroleum system is well proven in the area Neon is confident that valid structures will offer relatively low risk exploration upside to compliment the field’s production.

Neon has begun preparations for a 2D seismic survey that will delineate targets on the Glau and Rancho Rico leases for a drilling campaign that would start in coming months. Exploration success on these leases would provide the company with incremental reserves, production, and revenue to offset the field’s natural decline.

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

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...