Dyer Creek Recompletion Updates

PROJECT SUMMARY

Dyer Creek Oil Field Proposed Development Project

In 2005, Northwest Petroleum, Inc. conducted a field study of the Dyer Creek Oil Field in Kern County , California . The Dyer Creek Oil Field was discovered by Shell in 1941. The discovery well, the Smith 56X-11, came in pumping 184 barrels of 15° gravity oil per day from the Vedder Zone at a depth of 2,361 feet. The results of the 2005 field study suggest that the Dyer Creek Field has an untapped development potential. Cumulative oil production is very small relative to the size of the field. Only one percent (1%) of the estimated 3.9 million barrels of oil in place has been produced.

Northwest Petroleum, Inc. proposes to re-activate the Dyer Creek Field and has identified a three (3) well development project for Dyer Creek. The project includes re-drilling and re-completion, with modern completion techniques, which includes gravel packing the wells. The wells will then be equipped and returned to production. Each of these wells is estimated to produce 33 barrels of oil per day for a total of 99 barrels of oil per day. This is an average production rate for the first year.

13 February 2007 -  In my last update letter, I talked about the Dyer Creek #1 well. The pumping unit and flow lines to the have been installed. In December we pumped 3,000 barrels (bbls) of completion fluid into the Dyer Creek #1, not 300 bbls. As written in my letter dated 12/20/2007. I apologize for the mistake. The 3,000 bbls of completion fluid were pumped into the Vedder Oil Sands. The pumping unit can pump approximately 80 bbls a day. With using the 3,000 bbls of completion fluid, it will take around 27-½ days pumping 80 bbls per day to pump back all the completion fluid before we start seeing oil.

If the above calculation is correct, we should begin seeing oil on or about 27 February 2007. We will be sure to keep you informed as things progress.

13 September 2006 - To bring you up-to-date on the re-completion project for Dyer Creek, we are currently having the old wells surveyed. Two of them are underground and need to be excavated and a new wellhead welded on.

It looks like we can get a rig and the rest of the equipment we need in November to begin the first well.

You can few some of the pictures in the gallery.