North San Ardo (NSA) Oil Field

SAE Operator and 100%

NSA is located immediately adjacent to the giant producing San Ardo oil field from which almost 500 million barrels of heavy oil have been produced, stimulated by steam recovery techniques.  The producing San Ardo oil field is operated by Chevron and AERA (a joint venture between EXXON-Mobil and Shell) and is currently the subject of renewed investment (believed to be almost US$300 million) by these major companies.

NSA is mapped as a northern anticlinal spur off the San Ardo field and has 12º API gravity oil accumulated in the Lombardi sandstone, one of two main reservoirs in the giant field.

NSA has become a show case project for Salinas and has been brought into permanent production reaching 1,000 bopd through purpose built facilities with nominal capacity for 2,000 bopd.  The production is initially pump assisted primary production which will be followed by steam enhanced production in due course.  Such production enhancement techniques are very common in California.

The field is so far perfoming at the high end of expectations with production peaking at almost 1,400 bopd during July 2008 and maintaining approximately 1,000 bopd.  July revenue was US$3.5 million.