Oil Company Increases Stake in Area Fields

An aggressive independent oil producer, Saba Petroleum Co., is increasing its stake in Ventura County with its second acquisition in the last two months in a field in the El Rio area north of Oxnard.

And Irvine-based Saba is about to close two additional acquisitions in the Santa Paula area.

With major producers basically out of the game, Ventura County presents opportunities for smaller companies that can move quickly and also cope with environmental concerns, says William L. Wineland, Saba’s president.

“We’re definitely interested in looking at other properties in Ventura County,” he said. “For various reasons, these fields may no longer be attractive to the majors, but we feel we can operate them profitably.”

In its latest deal, Saba entered into an agreement to increase its ownership to 53% of the Santa Clara Avenue Field north of the Ventura Freeway.

Last month, the company bought a 33% interest in the 16-well field for an undisclosed price from Pennzoil Co.

Wineland declined to identify the seller of the additional interest, but said it is an independent oil company.

Saba’s interest in the field will now amount to reserves of 333,000 barrels of oil and 141 million cubic feet of gas, Wineland said.

The field produces 325 barrels of oil daily.

This week, Wineland expects to close the purchase of a 100% interest in another field and a 50% interest in yet another, both near Santa Paula.

Each of the properties produces about 40 barrels daily.

Saba, which had revenues of $6.9 million and a net profit of $365,000 in 1992, also operates a field in Weldon Canyon, in the Ojai area, and has a field office in Saticoy.

“In my opinion, environmental problems are a key reason the majors have been pulling out of Ventura County,” Wineland said. “All they have to do is spill a bucket of oil or have some other mishap, and it’s reported in the newspapers. To a huge company, it isn’t worth the public relations risk.”

Whatever the reasons, in recent years, Texaco, Chevron, Mobil and Shell have either slashed or eliminated their Ventura County operations.

Not that Wineland is insensitive to the environment.

Last year, Saba acquired D & S Industrial Services Inc., a Saticoy firm that specializes in helping oil producers meet environmental standards.

D & S monitors Saba’s operations and also works with other independents throughout Southern California, Wineland said.

Saba also operates a 225-well field in northern Santa Barbara County, and has other producing properties in Michigan, New Mexico, Oklahoma, Texas and Wyoming.

The firm’s stock is traded on the American Stock Exchange’s Emerging Companies list.