land swap

Nuenco announced in May 2008 the Joint Venture’s intention to drill the first priority prospect from the San Joaquin Joint Venture
acreage, Guijarral Hills #1 well. Guijarral Hills #1 will target a stratigraphic trap formed by an updip permeability barrier in the Eocene
Gatchell sandstone on the plunge of the Coalinga Anticline. The Prospect has a total P50 estimate of 5 million barrels and will also target
potential Leda sands as a secondary objective.
The Gatchell sands are shallow marine sandstone averaging about 200 ft
thick, typically with good porosity and permeability. Initial flow rates have
been variable in the past, but are estimated between 300-500 barrels per
day. Wells produce approximately 250,000 – 500,000 barrels of oil with some
gas. There could be as many as 20-25 development wells. The well is to be
drilled to depth of 12,000ft and is now expected to