Maiden Nuenco well yields Californian gas Tuesday, October 19,...

Maiden Nuenco well yields Californian gas

Tuesday, October 19, 2004

Nuenco looks to have discovered gas in its first well since a new board and management took over the company last quarter. The well in question, Jack Hamar 1-1 JV in California, was drilled to a TD of 9,370 feet and encountered "1,000 gross feet of prospective hydrocarbon section in the Monterey Shale and Etchegoin formations".

According to Nuenco MD Anthony Kain, "The board of Nuenco [formerly Anzoil] is delighted to have made a discovery of oil and gas with its first well since the change of the board and management team earlier this year. For any company to make a discovery with its first well is a significant achievement." The ASX-listed Orchard is an equal 25% partner in the well with Nuenco.

"The Jack Hamar discovery will now be subjected to an extensive testing operation in the Monterey Formation which was the primary target in this exploration well. Depending on the testing results, Jack Hammer could become a significant development [and], at this early stage, the indications are encouraging, especially considering the amount of producing wells within very close proximity to our discovery.

"The shallow discovery of gas in the Etchegoin Formation could also be a real bonus as this zone was not previously considered a material target. Good gas indications from the log analysis provide enough encouragement for the joint venture to pursue an appraisal well as soon as possible," added Kain.

In a statement Nuenco said, "Over the weekend the Caza Rig 61 drilling rig cased and completed the well running and cementing 5?inch casing to total depth in preparation for testing the potential productive intervals."

"The testing will most likely include the hydraulic fracturing of certain Monterey intervals in order to stimulate overall production. Well testing and completion procedures for the Monterey will be aimed at identifying the most advantageous approach to maximising potential production [but] it is likely that complete testing of the multiple hydrocarbon bearing intervals will not take place until additional wells have been drilled in the program," it added.

The partners in the Jack Hamar-1 well are Nuenco LLC, Orchard Petroleum Inc, Nahabedian Exploration Group LLC and Matris Exploration Co. Each holds a 25% share in the venture.