Termo to Pursue Complete Environmental Impact Review for Aliso Canyon Project

April 7, 2015

Termo Announces Plans to Pursue Complete Environmental Impact Review Process for Planned Project in Current Aliso Canyon Oil Field

Long Beach, CA — Representatives from The Termo Company announced today that they would be conducting a complete environmental impact report (EIR) for its proposed project on private property in the northern portion of the Aliso Canyon Oil Field. Termo made the announcement following ongoing engagement with leaders from Porter Ranch, Los Angeles County and City. As part of today’s announcement, Termo also reiterated that it has committed to not use hydraulic fracturing on any of the expanded operations.

Although not required for the proposed project, Termo elected to perform a complete EIR because it will provide the community with a forum to engage in a discussion about the added oil and gas operations and to study the proposed project in a transparent manner. As proposed, the project would add three new pads—roughly an acre in size—for expanded oil and gas operations. These expanded operations are more than a mile away from the nearest home; will not be visible to the community; and have been designed to minimize impact to the surrounding habitat. “We are proud to have been a part of the Porter Ranch community for more than 26 years,” said Ralph Combs, project manager for The Termo Company.

“We are committed to ensuring that our new proposed project moves forward in a respectful manner towards the community and natural habitat. It is our hope that the community and interested stakeholders will be an engaged and active part of the EIR process.”

Since 1989, Termo has been operating oil and gas recovery facilities in the private Aliso Canyon Oil Field. In that time, the company has registered no significant incidents and no complaints from the community. Termo operates 24 total wells on the site—all are more than a mile from the nearest home. The northern Aliso Canyon oil field is predominantly occupied by gas facilities operated by the Southern California Gas Company.

Later this spring, the EIR process will begin for the proposed project in the existing Aliso Canyon Oil Field. The process will provide multiple opportunities for the community to discuss the project and any concerns. As well, it will evaluate Termo’s project design and alternative approaches. Currently, it is expected that the first public hearing will occur sometime in Spring 2015 and that a draft report will be available for review in Summer 2015.

Throughout the process, interested parties will be able to review all materials and get the latest information at www.northalisoproject.com.

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Termo Drills Several Successful Wells in Fresno County

February 2, 2015

Termo has successfully drilled and completed two new oil and gas wells in Fresno County, California and is waiting on completion of a third. A fourth well was a dry hole. Both completed wells initially flowed without artificial lift. A fifth well will be drilled in the spring of 2015. The wells are in three distinct project areas and target the Zilch sands at a depth of approximately 6,000 feet. All wells were drilled without complications. The success sets up the possibility of multiple wells per area and Termo expects to eventually drill and complete up to twelve wells in Fresno County.

2014 - Year in Review and Highlights

January 15, 2015

Termo wrapped up a busy and productive 2014 with our ongoing focus on both development and exploratory drilling bringing several successes and some dry holes. We were able to implement $25 million of a budgeted $30 million capital budget. Some operations highlights include the purchase of a majority interest in two newly drilled and successfully completed wells in our Section 28 Field in Louisiana; the drilling and completion of the Gauthier #1 well, also in the Section 28 Field; drilling two successful wells in Fresno County, California; and ongoing community outreach in Los Angeles County in support of Termo’s North Aliso Canyon Project. Termo also drilled four dry holes – two in California, one in Wyoming and one in Louisiana.

On the non-operated side, our participation in multiple Bakken wells in North Dakota and Montana continues unabated. We also experienced some success (but with significant upside potential) in Texas. The company is also very excited about its participation with Chevron in Lea County, New Mexico and with Houston Energy in south Louisiana.

The Company completed multiple infrastructure and facilities upgrades and as well as implemented additional environmental protections on its leases in California and added an additional staff member to its regulatory team. The year ended with no lost-time incidents, affirming the Company’s and the Termo Team’s commitment to ensuring a safe and secure workplace as we close in on a million hours of no lost time for our California operations.

North Aliso Canyon Project Update

November 3, 2014

Termo is continuing its collaboration and work with the Los Angeles Department of Regional Planning on our proposed twelve well expansion of our existing Aliso Canyon operations (eighteen wells) in northern Los Angeles County. At this time, the County is beginning to draft the Initial Study as part of the CEQA process.

The Project website has been updated and contains a wealth of information. Those interested are encouraged to find out more at www.northalisoproject.com  

Termo has been actively engaged in meeting with community stakeholders and as a result of these discussion and the ideas generated, we made several changes to the Project Description. To date, Termo has spent $330,000 on permit related studies and engineering.

Celebrating our Independence

July 4, 2014

Termo wishes everyone a Happy Independence Day!  We are proud to work with our partners in the pursuit of Energy Independence for the United States by exploring for and producing our domestic oil and natural gas resources.  We will doggedly pursue this path forward as we seek a more economically sustainable and energy independent America.