Source: Sun Cal Energy
Sun Cal Energy Inc. (Pinksheets:SCEY) has entered final negotiations for the acquisition of a signification leasehold interest located in the prolific San Joaquin Valley Basin of Central California.
Sun Cal is negotiating a 66.7% Working Interest and a 20% Net Royalty Interest in a shale oil and gas prospect that contains approximately 10,000 contiguous acres in the San Joaquin Basin. The prospect is situated within the boundaries of an oil field trend, which through calculations utilizing the Monte Carlo Simulation, indicates the potential for over 200 million barrels of oil in place. California has 10 of the largest productive oil fields in North America.
As previously reported, Occidental Petroleum Corporation (NYSE:OXY) made a significant discovery of oil and gas reserves in Kern County, California. At the time of the announcement, Occidental believed there were between 150 million and 250 million gross barrels of oil equivalent (BOE) reserves within the outlined area where it drilled six wells to delineate the discovery.
With the stabilization of oil prices, the weakness in natural gas prices, and most importantly, the recent discovery of a massive and nearby oil field by Occidental, Sun Cal Energy has chosen to shift its primary company focus to developing its San Joaquin Basin Prospects in California.