Modiin finds indications of oil in California

oil prospect

The drilling operator is recommending production tests for the prospect.

The Modiin Energy (TASE:MDIN.L) limited partnership today reported that a drilling of the Mountain View project in California, in which it is a partner, had reached its final depth. According to an analysis of the findings collected in the drilling and an analysis of the electrical logs (which test the characteristics of the rock and liquids in it using an electrical measuring device), there are signs of oil in the drilling. Based on these findings, the drilling operator is recommending production tests in order to estimate the rate of production and the size of the reservoir in the prospect.

"Before the beginning of actual production testing, Modiin is likely to make another report containing a list of the dates of and the manner in which the production tests will be carried out, and the projected cost," Modiin's announcement read.

Another land-based drilling which Modiin is a partner, the GrapeVine project, also located in Kern County, California, is currently taking place. This drilling, which began in early July, is being conducted in the Sauvignon prospect, and is expected to continue for two months, reaching a planned depth of 4,700 meters. A previous drilling project in the same field three years ago proved the presence of oil, but the project was discontinued because of mechanical difficulties.

Published by Globes [online], Israel Business News - www.globes-online.com - on July 16, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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