News on well #1 and news on well #2
posted on Dec 05, 2008 11:51AM
December 5, 2008: Consolidated Beacon Resources Ltd. (TSXV:KBC), "Beacon" or "the company" announces the Sunday #1 well has been successfully drilled, logged, and cased to a total depth of 3065 ft.
The Nabors Drilling Rig #472 has since been moved to drill the second well, Olancha #1 which commenced drilling 3rd December 2008.
Based on logging results, the Sunday #1 well encountered 24 ft of potential oil pay with 31% estimated porosity in a zone within the Vedder Formation. A program is currently being prepared to complete, test and place the Sunday #1 well on production.
The Sunday #1 well was the first of a planned four well exploration drilling program by Beacon and its partners (the "Partners"). The four well locations were selected for Vedder Formation targets based on interpretation of a 35.2 mi.² 3-D seismic program acquired over an Area of Mutual Interest (AMI) in late 2007. After drilling to basement of the four Vedder Formation exploration wells, the interests in the AMI will be Chevron 50% and the Partners 50%. After completion of the drilling program, Beacon's net interest in the AMI will be 12.5% before payout, 6.25% after payout.
The Sunday #1 location was drilled directionally to test multiple fault controlled Vedder Formation targets identified by seismic in a relatively unexplored area. Based on log and core analysis, the Sunday #1 well encountered highly porous and permeable sandstone reservoirs which could contain 15° API to 25° API crude oil.
Charles Desjardins, President of Beacon, states "The success of the Sunday #1 well bodes well for further exploration in the area. The San Joaquin Basin has been a very prolific oil producer, but until now, the AMI area had not been explored with modern seismic techniques. The high quality seismic program acquired by Beacon and its Partners in late 2007 identified over a dozen potential exploration prospects. Successful exploration and development of these prospects could add significant oil production to benefit the company and its partners."
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.
FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:
Consolidated Beacon Resources Ltd.
Richard J. Hawes, P. Geol. Email: [email protected]
Telephone: (403) 221-8392 or visit the Company's website at http://www.consolidated-beacon.com
Archie Boyce, Director Email: [email protected]
Telephone: (604) 683 5445 ext 227
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