newsCONSOL BEACON RESOURCES
Consolidate Beacon Resources Ltd. announces commencement of 3-D Seismic Program in the San Joaquin Basin, California
10/30/2007
Consolidated Beacon Resources Ltd.
Suite 260, 600 - 6th Ave, SW, Calgary, Alberta T2P 0S5
Consolidate Beacon Resources Ltd. announces commencement of 3-D Seismic Program in the San Joaquin Basin, California
CALGARY, Alberta, Tuesday, 30th October 2007 Consolidated Beacon Resources Ltd. (KBC-TSXV) (Beacon) is pleased to announce that the previously announced 3-D seismic survey is underway on its East Slopes project area in the San Joaquin basin in Southern California.
The 35.2 square mile survey (approximately 22,500 gross acres) will cover an Area of Mutual interest (AMI) established by Beacon and its partners (Partners) and Chevron U.S.A. Inc. (Chevron). Under the terms of a Seismic Option Farm-Out Agreement (the Agreement), Chevron will fund 100% of the cost of a 3-D Seismic Survey to earn a 50% interest in the approximately 19,000 acres of leases contributed to the AMI by the Partners. The Partners will then have the option to earn a 50% interest in the over 3000 acres of leases Chevron contributed to the AMI by drilling four wells on mutually agreed prospects at which time the Partners and Chevron would each own a 50% interest in the leased AMI Lands.
The 3-D High Definition Survey will be the first modern data acquisition over the survey area. Drilling targets are highly porous and permeable sandstone reservoirs containing 150 API to 250 API crude oils at depths of 1,200 feet to 3,000 feet, and are therefore relatively inexpensive to drill.
It is expected that the Seismic Survey data acquisition phase will be completed before November 30, 2007. Processing and interpretation will follow, with the first drilling expected in the first quarter of 2008.
Beacon has no cost associated with the seismic program. Beacon will pay about 5% of the cost of the initial four test wells and will have no cost for the next five wells. Beacon will then retain approximately a 2.5% working interest in the Chevron AMI leases through its approximate 20% interest in Nomad Hydrocarbons LLC. After drilling, the wells drilled on the AMI lands will be operated by Chevron and produced crude oil will be sold to Chevron at posted market prices.
Beacon also still retains its 9.65% interests in the remainder of the San Joaquin East Side Project
About Consolidated Beacon Resources Ltd.
Consolidated Beacon Resources Ltd. is a Calgary, Alberta based corporation in the business of evaluating and acquiring oil and natural gas properties for exploration and development in Canada and the United States.
Consolidated Beacons Board of Directors comprises:
Mr. John G.F. McLeod, P. Eng., Chairman, of Calgary.
Mr. Richard J. Hawes, P. Geol., Secretary, of Calgary.
Mr. Gil Schneider, of Vancouver.
For further information about the Company, please contact:
Richard J. Hawes, P.Geol.
Consolidated Beacon Resources Ltd.
T: 403-221-8392
E: rjhawes@consolidated-beacon.com
or visit the Companys website at: https://www.consolidated-beacon.com