East San Ardo (ESA)

Neon Operator and 100% Working Interest Holder

ESA is located on the north eastern flank of the giant producing San Ardo oil field, from which c. 500 million barrels of heavy oil have been produced.  The San Ardo field is operated by Chevron and AERA (a joint venture between EXXON-MOBIL and Shell) and the ESA lease is north and adjacent to the area from which AERA are currently producing from the field.

The ESA lease covers 337 acres and the mapped eastern-most portion of the San Ardo field.  There are no wells in the lease or indeed within two miles to the north of the lease.

Based on well data alone previous interpretations suggest this lease contains a structural low just outside the extent of the San Ardo field.  However Neon have acquired a 2D seismic line through this lease which indicates that at the reservoir level the section rises upward - suggesting that the San Ardo field may extend over much of the 337 acre lease area.

Neon estimates that this lease has the potential to hold up to 8.6 million barrels of oil in place.