HOUSTON--(BUSINESS WIRE)--The Blacksands Pacific Group, Inc, including affiliates and subsidiaries ("Blacksands Pacific" or the “Company”), announces that it has entered into a Joint Venture Agreement (“The Agreement”) with Oil and Gas Technology Fund Inc (“OGTF”) for the development and production from the Torrance Field acreage located in the Los Angeles Basin, California and the exploration and development of other Prospects in Nevada.
Background
Blacksands Pacific extends its partnership by executing an agreement with OGTF to jointly develop and produce from the Torrance Field in Los Angeles Basin, California, as well as explore and develop other prospects in Nevada. Under the terms of the Joint Venture (“Participation”) agreement with OGTF, Blacksands Pacific as Partner and Joint Operator will acquire 50 per cent of the working interest and mineral lease rights of the Torrance field acreage including existing proven reserves from OGTF currently holding 100% working interests subject to 20% royalties in the mineral rights ownership, additional to a 50% assignment of working interest and mineral rights in other Nevada Prospect. Blacksands Pacific has undertaken to fund 100% of the work program for the projects.
Torrance Field, Los Angeles Basin, California
The Torrance Field is located in Los Angeles County, about eight miles northwest of the City of Long Beach, adjacent to the Wilmington Field. The entire acre of property is located within the City of Torrance.
The acre of property is located in a structurally high position in the western part of the Torrance Field, which is on the same anticlinal trend as the super giant Wilmington Field. Total production on this trend approaches 3 billion barrels of oil.
Production in the Torrance Field has been from the Pliocene Repetto Ranger Zone and Miocene Puente Main and Del Amo Zones. All of these are oil sands. 61 wells drilled on the property, have produced mostly from the Main Zone. Only one well penetrated the Del Amo Zone, and showed promising sands.
The property is surrounded on all sides by producing wells, including directional wells of the Del Amo unit to the east, and the Redondo unit to the west.
Consulting Geologists have identified a + 300 Million Barrels to 1 Billion Barrels resources prospect in the other Nevada Prospect.
Forward work Program
The near-term work program will consist of:
- Drilling of 5 production wells within the Torrance Field.
- Drilling of 10 Exploration Wells within the Nevada Prospect.
- Additional Exploration drilling.
Production is expected initially from 5 wells from the Torrance field with over 60 wells proposed as part of combined Program I & II. The Torrance Field is highly prospective with proven reserves and contingent resources.
Commercial terms
The agreement executed between Blacksands Pacific and OGTF defines the commercial terms under which Blacksands Pacific through its E & P subsidiary (Blacksands Pacific Energy Holdings LLC including subsidiaries) will participate in the production and development of the Torrance Field and the exploration and development of the leased area covered within the Nevada Prospect (pursuant to the executed Joint Venture “Participation” Agreement, and Operating Agreement(s)) and provides for Blacksands Pacific to acquire 50 per cent mineral rights ownership and working interest in the Torrance field and 50 per cent working interest and mineral rights in the Oil and Gas leases in the other Nevada Prospect.
Pursuant to these agreement(s), funding of the proposed work program is estimated to be in excess of $300m and will be provided in 2 tranches with the initial tranche for the commencement of drilling and production from the Torrance fields and the subsequent tranche(s) for the commencement of exploration drilling within the other Nevada Prospect.
Notes to Editors
About Blacksands Pacific
BLACKSANDS PACIFIC is an international Energy Group. Our businesses include the exploration and production of Oil & Natural Gas, the trading of Crude Oil and Petroleum Products with future plans to provide Oilfield (Energy) Services.
BLACKSANDS PACIFIC is headquartered in Houston, Texas, United States. Our core asset interests are in the U.S. Gulf Coast, Southern United States, Pacific United States, the Plains States Region, the Rocky Mountains Region and Canada. Our International subsidiary focuses on our Offshore / International Operation with core focus or interests in the Sub-Sahara (West and East Africa), Indian Ocean with future plans to expand throughout the African Continent. Our geographic core regions are United States / Canada, Africa, South East Asia and the Indian Ocean. More information at www.blacksandspacific.com
About Oil and Gas Technology Fund, Inc
Oil & gas technology Fund, Inc. (OGTF) is a Houston, Texas based oil and gas exploration firm, which holds 8,000+ acres of BLM mineral leases, with oil deposits estimated at 300 million to 1-billion+ barrels. Over the last 10 years OGTF has researched and conducted tests that have led to the identification of large structures of oil deposits.