Oxnard Field Holds Vast Oil Reserves, Geo Learns

Independent petroleum engineers have estimated that Oxnard Field land leased by Geo Petroleum in Los Angeles contains reserves of 33.3 million barrels of oil, according to Dennis Timpe, Geo chairman and president.

The engineers also predicted the property would yield net revenues of $275.8 million, with a discounted present value of $160 million, using existing drilling technology, Timpe said.

Geo said it plans to increase the recoverable reserves in the field by using new technology called Steam Assisted Gravity Drainage. The engineering firm predicted that successful use of this process would add reserves of 15.3 million barrels, expected to yield future net revenues of $194.6 million with a present value of $83 million.

Timpe estimated that $18 million to $45 million in capital will be needed to develop Geo’s holdings on 630 acres. The company will seek the capital using a combination of project financing, joint ventures and other investment sources, he said.

Geo emerged from bankruptcy in December, when it obtained a $500,000 capital investment from TD & Associates Inc., a firm managed by Timpe. Timpe said U.S. Bankruptcy Court earlier this month approved the settlement of three lawsuits related to the bankruptcy, enabling Geo to proceed with its plans to develop the Oxnard Field.