- Published: 28 October 2008
- Written by Editor
Consolidated Beacon Resources Ltd. Increases Stake in San Joaquin Oil Project
Consolidated Beacon Resources Ltd. ("Beacon" or "the Company") (TSXV:KBC) is pleased to announce that it has signed an agreement with Nomad Hydrocarbons LLC (Nomad) to increase Beacon's interest in the lands covered by the 31 square mile 3-D Seismic Survey in the San Joaquin Basin, California. Beacon will pay 100% of Nomads costs and receive 100% of Nomads revenues (12.5%) until Nomad pays Beacon for its share of the first 4 wells. When Beacon is reimbursed by Nomad, both Beacon and Nomad will receive 6.25% of all revenues (from the Project) from that day forward. (Currently these wells are nonproducing; these percentages will take effect only if these wells go into production).
The Operator has licensed the first three well locations in the 2008 exploration drilling program north of Bakersfield, California. The drilling program will commence immediately upon the availability of a suitable rig. Beacon has forwarded the funds to Bakersfield to cover the drilling cost for the first well.
Beacon is continuing to look for opportunities to expand its exploration and production interests in the San Joaquin Basin. The industry downturn is expected to present investment opportunities in the area, which has a mature pipeline and refining infrastructure and a strong service industry base.
This News Release was reviewed and approved by Mr. Richard Hawes, P.Geol., Qualified Person for the project, in accordance with regulations under National Instrument 51-101.
San Joaquin Overview
Since March 2006, Beacon has been engaged in the business of acquiring medium and heavy oil prospects in the San Joaquin Basin, California in the San Joaquin East Side Project Joint Venture, (the "San Joaquin JV") on and around the Bakersfield Arch.
The San Joaquin Joint Venture has focused its initial efforts on a 10 mile wide north-south exploration fairway between the Round Mountain and Mount Poso oilfields to the east, the Kern Front and Poso Creek oilfields to the west, and the Kern River oilfield to the south.
Beacon's partners in the San Joaquin JV are Daybreak Oil & Gas Inc., California Oil & Gas Corporation, Calstar Oil & Gas Ltd. and the technical team that originated the project. A committee has been assembled from the various partners and is responsible for the overall management of the San Joaquin JV.
The San Joaquin Basin of South Central California is targeted for oil exploration for several reasons which are:
1. The East Slopes of the San Joaquin Basin are a very prolific oil-prone area, with approximately 13,000 wells drilled to date, and cumulative oil production to date of approximately 2.5 billion barrels.
2. The basin is very close to major markets, and has infrastructure and services in place approximately 21 miles to three oil refineries, capacity 116,000 BOPD.
3. USGS recently (2007) estimated remaining undiscovered resources in the San Joaquin Basin:
� 393 million barrels undiscovered oil
� 1.7 Tcf undiscovered natural gas
� 59 million barrels undiscovered natural gas liquids
About Consolidated Beacon Resource Ltd.
Consolidated Beacon Resource Ltd. is in the business of evaluating and acquiring oil and natural gas properties for exploration and development in Canada and the United States. The Company's shares trade on the TSX Venture Exchange under the symbol KBC.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This release may contain or be deemed to contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual events or results. Readers are referred to the most recent documents filed by the Company on SEDAR (www.sedar.com), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to review or confirm expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements include references to production and cash flows before and after payout.
FOR FURTHER INFORMATION ABOUT THE COMPANY, PLEASE CONTACT:
Consolidated Beacon Resources Ltd.
Calgary Office
Richard J. Hawes, P. Geol. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone: (403) 221-8392 or visit the Company's website at http://www.consolidated-beacon.com
Vancouver Office
Archie Boyce, Director Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone: (604) 683 5445 ext 227
