Houston-based exploration and production firm PetroSouth Energy has announced that it will participate in the North Semitropic prospect, located in Kern County, California, following a farm-in agreement with the prospect's operator Transco Oil & Gas.
PetroSouth noted that an independent expert has estimated that the three main targets to be explored in the North Semitropic prospect have potential gross reserves of 32 million barrels oil (MMBO) and 19 billion cubic feet of gas (BCFG).
The North Semitropic prospect is located on the Rio Bravo-Greeley trend in northern Kern County. PetroSouth has acquired a 25% interest in the prospect as part of the farm-in agreement.
PetroSouth said that the prospect is situated on the same trend as recently completed wells. The nearby North Shafter field wells in this trend have reported initial production rates of 700-800 barrels of oil per day or more. Some of these horizontal fractured Monterey Shale wells in the North Shafter field have reportedly recovered 300,000-500,000 barrels of oil per well and are still producing.
Fred Zaziski, chairman of PetroSouth Energy, said: The participation in the North Semitropic prospect located in the prolific San Joaquin Basin enhances our existing portfolio of high-value energy projects. An excellent fit with the company’s overall strategy of delivering sustainable growth focused on developing oil and natural gas reserves.