A Hit and a Miss with Recent Drilling

December 10, 2018

Utilizing the Ensign 535 Super Single automated drilling rig, Termo drilled two wells back to back in the San Joaquin Valley of California this fall.

For the first well we partnered with Stephens Production Company of Denver to drill an exploratory 10,500’ well outside the existing Mountain View Oil Field in Kern County. This was a Stevens sands test based off of 3D amplitudes and an old Unocal discovery. Working with Krummrich Engineering of Ventura and the Ensign team, the drilling was quick, safe, and error free. The beauty of the automated super single is that it significantly reduces the risk of potential harm to the rig crew, while at the same time speeding up the drilling process. It also has a smaller footprint than other deep rigs which pleased our surface and mineral owner, a local farming family. The small footprint, combined with a closed mud system, means easy cleanup and restoration after the drilling is completed. Unfortunately, this exploratory well was unsuccessful, so we were grateful for the minimal impact and subsequent easy cleanup post-drill. On a positive note, we believe there may be additional opportunities in the area and our geologist and engineer are in the process of refining our approach based on the data from this drilling program.

The Ensign rig then moved up the Valley to drill an offset to our existing 2015 discovery north of the community of Riverdale, in Fresno County. This was an even smaller drilling pad, and the Ensign crew was great about accommodating the needs of the farming family and preserving their pistachio orchards. The move in and rig up went smoothly and we got started on drilling the 8,000’ Miocene Zilch sand test. Again, utilizing the automated rig combined with the expertise of the team from Krummrich Engineering, the drilling program went smoothly and we finished under-time and under-budget allowing the rig crew and staff to break free for Thanksgiving. We were thankful for another error-free project and, in this case, a productive well. Our team in Fresno is currently in the process of connecting this well to our existing facilities nearby and we expect to have the well on production in late February. This is the fifth well we have drilled outside of existing oil fields in Fresno County in the last few years and this recent success provides further evidence that this is an exciting area for ongoing discovery and step-out development for Termo and our partners.

Termo at NAPE Summit 2018

February 6, 2018

Termo skipped the last couple years of NAPE due to budget constraints, but we are back in Houston this year for the largest gathering of Oil and Gas Companies and Executives in North America. As we actively seek drilling prospects and catch up with old friends, we hope you will stop by and say hello to our executive team as we gather in Booth 4335.

We are also partnered with Penta Resouces on the Keystone Project (more information www.termoco.com/operations/case-studies) and both teams are available to discuss this interesting deep sands test in Louisiana.

See you there!

2018 Capital Budget and Drilling Plans

January 23, 2018

While Termo has largely sat on the sidelines for the last two years, we did continue to participate in our non-operated working interest positions, which included multiple Bakken wells, some drilling in Texas and Louisiana, and a working interest position in Weld County, CO.

As we enter 2018, we are eager to drill. Our current plans include two medium risk development wells in Fresno County to build upon our 2014 discoveries there. The Company also plans a moderate risk exploratory well in Kern County near our existing operations. The Kern County well is currently going through the local permitting process while the Fresno County wells have completed the local entitlement process.

In addition to the three exploratory wells, Termo will continue with its workover and enhancement plans of its operated wells in California and Louisiana. The Company hopes to bring some idled wells back on line in Wyoming as well.

Also in 2018, the Company plans to continue its rewarding non-operated working interest participation in multiple Bakken wells, several Niobrara wells in Colorado, and a small interest in three wells in Oklahoma’s SCOOP/STACK areas.

Termo Featured in the Long Beach Business Journal

January 16, 2018

Ralph Combs was included in the Long Beach Business Journal’s 2018 Economic Outlook Edition discussing “What is the 2018 outlook for oil from The Termo Company’s perspective?” A few excerpts: We need to remain cautiously optimistic and not get too excited …. There are so many factors that could change the outcome. Will higher prices bring more US drilling or will rising drilling costs curtail it? Will OPEC and Russia hold steady on production curtailment through the end of 2018 per their agreement? We do plan on drilling at least one well in California this year, and possibly up to three. We will certainly use this uptick in prices as an opportunity to do work that we have been putting off… Our projection for the price of oil at the end of 2017 was $54.10 (so we missed it a bit) and when we surveyed the group last week, the consensus for the end of 2018 is $68.40…ask us again at the end of 2018 and we will see how we did!

Since we are a born and raised Long Beach company it is always an honor to discuss business with the greater Long Beach business community. Thank you Long Beach Business Journal!

Termo Says Goodbye to Long-Time Team Members

November 1, 2017

The last year and a half have seen several team members enter into retirement after decades of dedication to Termo. We are immensely proud of their longevity with the company and have ensured that their hard work and capable management has been passed on to good hands.

Our long-time Office Manager and Receptionist Raquel left to have a baby (whose visits bring lots of joy to the office). On the regulatory side, Rae Lynne retired to spend time with her family and partner in Northern California. Our Louisiana Supervisor, Jesse departed the lease he has called home for almost 50 years to spend time with his wife and family. In our Accounting Department, our long-time Controller Vince has retired to the Santa Barbara area. In the Land Department, Sarah is departing to the Blue Ridge Mountains of Tennessee to be closer to family.

All these team members have dedicated themselves to Termo and our success and we wish them the very best in this next chapter of their life.