+++++++++++++++++++++++++ Victoria Petroleum NL has advised by the Operator for the San Antonio Exploration Project, Trio Petroleum Inc, that preparation for completion and testing operations to begin production testing of the significant oil and gas shows encountered in the Vacqueros Sand interval and the Monterey Formation commenced at the San Antonio-1 well site on 24 May 2002.
The test of the Vacqueros Sand will be the first of several tests in the cased hole testing program for San Antonio-1 to evaluate the oil and gas production potential of the Vacqueros and Monterey Formations.
The potential for oil to flow from the target horizons is considered encouraging in view of the oil shows and oil flows of up to 500 barrels of 38 deg API oil per day cutting 20% water observed in a down dip 1983 well drilled on the flanks of the San Antonio anticline five kilometres to the northwest of the San Antonio-1 location.
The San Antonio anticlinal Prospect is a dual target oil prospect interpreted to have the potential to contain up to 106 million barrels of recoverable oil in the target Vacqueros Sand and Monterey Shale horizons, depending on the results of the current production testing program.
Further encouragement for the presence of oil in the San Antonio Prospect area is provided by adjacent production of 500 million barrels of oil from the San Ardo Field, 12 kilometres to the north.
Victoria Petroleum NL has a 5%* working interest in the San Antonio-1 well through its wholly-owned subsidiary Victoria Petroleum, Inc.
* After the recovery of drilling and completion costs from production from San Antonio- 1, Victoria Petroleum's contributing interests in ongoing development and production will be 3.75%.
Any hydrocarbons discovered in the San Antonio-1 well and prospect are commercially very attractive as an oil and gas pipeline runs within 400 metres of the San Antonio-1 well site.
Victoria Petroleum NL is very encouraged by the drilling results from San Antonio-1, the first well of Victoria Petroleum's ongoing 2002 California drilling program.
J Kopcheff MANAGING DIRECTOR
For information on Victoria Petroleum NL drilling activities visit our website at www.vicpet.com.au
VPE Price at posting:
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