Welcome To The Consolidated Beacon Resources HUB On AGORACOM

Message: Further news for KBC!!!

Further news for KBC!!!

posted on Oct 29, 2008 06:50PM
October 29, 2008 - 2:41 PM EDT

KBC:CA 0.04 0.00
Today 5d 1m 3m 1y 5y 10y

(via Thenewswire.ca)

October 29, 2008: Consolidated Beacon Resources Ltd. ("Beacon" or "the company") (TSXV:KBC) is pleased to announce further progress on the East Slopes Project in the San Joaquin Basin in Southern California. Interpretation of the previously announced 3-D seismic survey has identified more than 12 potentially drillable, structurally controlled prospects. Four "earning" well locations have been selected by partners and applications have been made for all four wells. Three drilling permits have been received, surface locations have been selected, contract negotiations with a suitable drilling contractor are underway, and the first well could spud in November 2008. Preparation for the surface location is complete, which will allow for move-in and set-up of the drilling rig as soon at one becomes available. Each well should require approximately 1 week to drill.

The four initial exploration wells will be drilled directionally to basement (less than 3,500') to test Vedder Formation targets within fault controlled structures identified from seismic. Chevron U.S.A. Inc. earned 50% of the approximately 19,000 acres of oil and gas leases held by Beacon's partners, Daybreak Oil and Gas Inc., California Oil & Gas Corp. (Operator), and Nomad Hydrocarbons LLC (the "Partners"), by funding the 35.2 mi.² 3-D seismic survey. The Partners will earn 50% of the approximately 3,500 acres contributed by Chevron by funding the drilling of the four initial exploration wells. Beacon will pay 12.5% of the cost of the initial 4 wells to earn a 6.25% working interest in the oil and gas rights to basement underlying these 22,500 acres after 100% payout of costs.

The target formations are highly porous and permeable sandstone reservoirs which could contain 13° API to 25° API crude oils. The initial four exploration wells will be drilled directionally to target multiple structurally controlled targets identified from the 3-D seismic interpretation.

Beacon is continuing to look for opportunities to expand its exploration and production interests in the San Joaquin Basin. The industry downturn is expected to present investment opportunities in the area, which has a mature pipeline and refining infrastructure and a strong service industry base.

This News Release was reviewed and approved by Mr. Richard Hawes, P.Geol., Qualified Person for the project, in accordance with regulations under National Instrument 51-101.

About Consolidated Beacon Resource Ltd.

Consolidated Beacon Resource Ltd. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development in the western United States. The Company's shares trade on the TSX Venture Exchange under the symbol KBC.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

This release may contain or be deemed to contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual events or results. Readers are referred to the most recent documents filed by the Corporation on SEDAR (www.sedar.com), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Corporation undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements include references to spud dates, production volumes, and cash flows before and after payout.


Consolidated Beacon Resources Ltd.

Calgary Office

Richard J. Hawes, P. Geol. Email: [email protected]

Telephone: (403) 221-8392 or visit the Company's website at http://www.consolidated-beacon.com

Vancouver Office

Archie Boyce, Director Email: [email protected]

Telephone: (604) 683 5445 ext 227

Copyright (c) 2008 Thenewswire.ca - All rights reserved.

Source: TheNewswire.ca (October 29, 2008 - 2:41 PM EDT)

News by QuoteMedia
New Message
Please login to post a reply