Termo’s principal oil and gas assets are its operated properties. The operated
properties make up more than 70% of the proved developed reserve value and
most of the proved undeveloped and probable reserve value. The non-operated
properties’ largest value is in producing royalty packages that have continued
to be attractive sources of cash flow over the years.
Los Angeles Basin, California
The Company holds an interest in six fields in the Los Angeles Basin. The Company's
interest involves 2,800 net acres and includes 48 producing wells with approximately
770 BOEPD to the 100% interest. Four of the fields have development drilling potential
that could greatly enhance their value. The Seal Beach property has potential in
several wells for recompletions in existing zones and adding zones that have not
yet been tested. The Aliso Canyon and Oat Mountain Fields have some infill and stepout
locations. During 2007, a new well was completed in each of the two fields. Further
infill opportunities are being studied.
Ventura Basin, California
The Company currently holds an interest in two fields in the Ventura Basin.
The Company’s interest involves 985 net acres and includes 27 producing
wells. These two fields produce 450 BOEPD. The Sulphur
Crest Field is a complex faulted anticline. Due to the complex faulting,
it is anticipated that updating the geologic interpretation to incorporate
new data will result in additional development opportunities. One new well
is planned for drilling in 2009 into a deeper reservoir.
San Joaquin Valley, California
Termo holds an interest in one field in Kern County. In the Mountain View
Field, the Company’s interest involves 237 acres and 13 wells producing
85 BOEPD. The Mountain View Field’s upside potential will be realized from
water flooding. The water flood pilot project has been completed and full scale implimentation of the water flood is scheduled for the fourth quarter of 2009.
Sacramento Valley, California
The Company has operations in four gas fields in the Sacramento Basin. The
Company’s interest involves 3,200 net acres and includes 20 wells. The Termo Company's operated wells, in these fields, produced approximately 1.5 million cubic feet of gas per day.
Termo acquired 3D seismic over approximately 5 square miles in the Willows Gas Field. At least one new well will be drilled in 2009 based on this seismic.
Powder River Basin, Wyoming
The Company holds a significant interest in approximately 7,000 gross acres and operates producing wells in Wyoming's Powder River Basin. Termo's South Joe Creek exploratory prospect has resulted in the discovery of the Reservoir Creek (Muddy formation) and S A Creek (Minnelusa formation) Fields. These fields were discovered with 2-D and 3-D seismic. There are several potential Muddy and Minnelusa formation infill and extension locations based on 3-D seismic. Both formations are amenable to water or tertiary type flooding. In late 2000, the SA Creek Unit was formed to water flood the Minnelusa zone and currently is producing approximately 200 BOPD. Ultimate recovery from the South Creek Unit is projected to be two million barrels of oil.
Coalbed natural gas (CBNG) is also present on the leases held by the Company. Termo has drilled twelve wells on this acreage, known as the “Section 15” project. Production from the twelve wells adds approximately 300 MCFPD to the Company's total gross operated production.
Approximately one mile west of the Section 15 project Termo drilled 20 additional CBNG wells. This property referred to as the Kline Draw project is currently producing approximately 700 MCFD gross gas.
The Termo Company has acquired an approximately 70% working interest position in a properly known as the Lateral Pond project. This property currently has five producing wellls, contributing about 75 BOEPD to the Company's operated production. A new well is scheduled to be drilled in 2009 that will test the Mowry Shale. This property consists of approximately 15,000 gross acres available for development and exploration.
South Louisiana
Termo operates two fields in Louisiana. The Section 28 Field produces 300 BOEPD with 19 producing wells and 2300 net acres of fee and HBP leases.