Currently, the Company is active in two project areas – Grapevine and Mountain View. The Company is the operator and largest working interest owner in both projects that are located in Kern County, a highly prolific oil producing basin containing 4 of the 10 largest oil fields in the United States, each with cumulative oil production greater than 1 billion barrels. The oil fields in the vicinity of the Grapevine project have produced approximately 200 million barrels of oil over the past 50 years from the same geological objectives from which the Company is producing oil. The Mountain View project is within the boundaries of an oil and natural gas field that has produced over 100 million barrels of oil and oil equivalents from multiple zones over the past 90 years.
Based on the implementation of two modern size able proprietary 3D seismic surveys in 2016 and 2017, which notably were the first modern seismic data ever acquired over both areas, the Company made two significant oil discoveries, one in each project area. To date, these discoveries have produced over 925,000 barrels of oil from 3 primary wells and have generated gross revenues of over $60 million since inception. The Company has scheduled several development wells to be drilled in 2023. This drilling activity will result in a major increase in the Company’s cash flow and proven producing reserve base. Although California has recently passed legislation aimed at limiting new drilling, the new legislation is expected to have minimal negative effect on the Company’s development program as the Company’s area of operation is located primarily in an agricultural area which is not densely populated. Additionally, the Company identified over 40 million barrels of prospective oil resources situated under its proprietary 3D seismic data. An exploration program designed to target these prospects is being developed.
The Company has made two material oil discoveries in California over the past 5 years, supported by its proprietary 3D data sets and use of advanced interpretation techniques. The Company’s two oil discoveries to date have produced approximately 1 million barrels of oil.
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In its Mountain View project area, the Company has in inventory one drill-ready development prospect with two attractive geological objectives, which offers the opportunity to discover and produce more than an additional 1 million barrels of oil. Infrastructure is in place for immediate high-rate oil production with attendant cash flow. Nearby, the Company has developed a large, moderate risk, multi-objective exploration prospect with un-risked mean prospective resources of over 15 million barrels of oil, also in proximity to infrastructure. This prospect has been confirmed by third-party evaluation experts. The Company is the operator of the Mountain View project area and owns the majority working interest.
In its Grapevine project area, where the Company is also the operator and the largest individual working interest owner, the Company has two producing oil wells.