Project Summary |
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| The project proposes to explore, test and possibly produce oil on approximately 260 acres on the western edge of the Huasna Basin, an existing California Department of Oil, Gas and Geothermal Resources (DOGGR) designated oilfield within the Meridian Anticline, an oil bearing geologic structure. Despite previous attempts to produce the field, little is known about the underlying oil reserves. The project plans to use modern exploration techniques to ascertain if substantial oil reserves exist and determine if long-term production is commercially viable. Prior to developing the proposed exploration project, Excelaron conducted technical analysis using existing data on the Huasna oilfield. This included obtaining all DOGGR well records, existing well logs and purchasing the limited seismic data available. A consulting geophysicist analyzed the existing data and made a series of potential reserve estimates. Additionally, other consulting geologists made recommendations regarding commercial viability based on experience with similar formations and the local petroleum industry. Based on these recommendations, Excelaron made the decision to pursue an exploration program to better determine the long-term viability of the Huasna oilfield. Due to the exploratory nature of the project, several project phases have been developed to provide a more methodical framework to better assess the project at any given stage in the process. Phase I, the Exploration and Testing Phase, includes minor improvements to existing access roads and well pads to accommodate drilling and testing equipment. Four new production wells will be drilled and tested over a six-month period. If the four wells fail to yield commercial quantities of oil, the wells will be properly plugged and abandoned, the site remediated and the project will be concluded. If the four wells provide favorable test results, the project will move into Phase II, the Production Phase. The Production Phase will result in the construction of permanent oil recovery facilities on site. A maximum of six tanker trucks will transport product from the site daily to a nearby refinery. The facilities have been designed to efficiently recover all potential by-products from the producing wells and accommodate any future expansion of the project. Additionally, Excelaron has agreed to clean up and abate any existing facilities left from previous operations. This cleanup will take place during Phase III, which is concurrent with the Production Phase of construction. If the Production Phase never occurs, Excelaron is still committed to pursue the cleanup as part of the site closures and remediation activities. Phase IV, the Field Development Phase, has been designed to better anticipate the reasonably foreseeable impacts associated with field expansion. The Field Development Phase includes the potential to drill an additional eight production wells over the subsequent four-year period. This would allow for additional data gathering, while limiting the foreseeable project growth to 12 production wells in five years. Existing ranch roads will provide for access not only to the well pads and shipping site from Huasna Townsite Road, but also through an adjacent ranch to Alamo Creek Road and ultimately on to State Highway 101. These existing roads will require minor grading, the installation of gravel and the application of soil binders/dust suppressants to ensure compliance with all regulatory agency requirements. A new deck surface and stringers will be constructed on the County's Huasna Creek Bridge to accommodate a load capacity of 25 tons.
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