VANCOUVER, April 20 /CNW/ - Tearlach Resources Ltd., (www.tsx.com, TSX.V:
Symbol: TEA) announces it has recommenced production in one of the world's
giant oil fields, of which it owns approximately 5.7%. The Company's approach
and innovative technologies breathes new production life into an old field,
with the potential of additional oil recovery.
The Company's NI 51-101 compliant reserves in the Kern Front Field are
currently 396,520 barrels Proven plus Probable of which 228,141 barrels are
Proven Producing plus non-Producing, dated June, 2006, by John Yu of Petrotech
Engineering Ltd., the Company's Qualified Person.
Tearlach is currently developing its interests in the Kern Front Oil
Field with the a total Enhanced Oil Recovery Development Plan combining 3D and
4D geophysical modelling, planned well development, drilling, and
The Kern Front Oil Field has historically produced 165 million barrels of
oil, and is estimated to have a potential of 500 million barrels of oil
remaining. That 1990 estimate was jointly developed by Martin H. Link of
Mobile Research & Development Corp, Kenneth P. Helmold of ARCO Oil and Gas
Company and William T. Long of OXY USA Inc., representing the then current
Field producers. That 500 million barrel estimate was developed prior to the
implementation of National Instrument 51-101 and is consequently now not
accepted under current NI 51-101 policy, but does represent an estimate of
potentially recoverable oil by then qualified professionals operating in the
Kern Field using 1990 accepted reporting standards.
The Company's properties are located within the combined Kern River and
Kern Front Oil Fields, and is a joint development of Tearlach Resources Ltd.
(60% working interest) (www.tearlach.ca; www.tsx.com; Symbol: TEA) and Western
States International, Inc. (40% working interest) (www.wsius.com). United
Pacific Energy Corporation is the project's Operator (www.upecglobal.com).
Although the Kern Front Field and the Kern River Field have been in
production for many years, the amount of oil they produced to date greatly
exceeds original reserve estimates. A December 20, 2006 article in Newsweek
Magazine (www.msnbc.msn.com/id/16288769/site/newsweek) which concerns the
phenomenon of underestimated oil reserve estimates, notes that '(a) most
astonishing (example) is the Kern River Field in California, discovered in
1899. In 1942 its "remaining" reserves were estimated at 54 million barrels.
Yet, from 1942 to 1986 it produced 736 million barrels, and still had another
970 million remaining.'
More generally, Klett and Schmoker (2003) demonstrated that, from 1981 to
1996, the estimated volume of oil in 186 well-known giant fields in the world
increased on average from 617 to 777 million barrels of oil without new
The phenomenon of 'reserve growth' is directly impacted by 'four
fundamental elements: technology, price, political decisions and better
knowledge of existing fields' (Maugeri, 2004)
The Company is continuing to use its expertise to evaluate additional oil
and gas properties for potential acquisition.
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
not historical facts and are subject to risks and uncertainties which could
cause actual results and the timing of certain events to differ materially
from those set forth in or implied herein including, without limitation, risks
associated with oil and gas exploration, development and production operations
and other risks, uncertainties and other factors that are beyond the control
of the Company.
The TSX Venture Exchange has not reviewed this News Release and neither
approves nor disapproves of the contents hereof, which remain the sole
responsibility of the Company.
M. H. Link, K. P. Helmold and W. T. Long, 'Depositional Environments and
Reservoir Characteristics of the Upper Miocene Etchegoin and Chanac
Formations, Kern Front Field, California,' in J. G. Kuespert and S. A. Ried,
eds., Structure, Stratigraphy and Hydrocarbon Occurrences of the San Joaquin
Basin, California, AAPG, 1990.
T. R. Klett and J. W. Schmoker, 'Reserves Growth of the World's Giant Oil
Fields,' in M. T. Halbouty, ed., Giant Oil and Gas Fields of the Decade
1990-1999, AAPG Memoir 78, 2003, pp. 107-22.
Leonardo Maugeri, 'Oil: Never Cry Wolf - Why the Petroleum Age is Far
from Over,' in Science, 304, 5674, May, 21, 2004, pp. 1114-1115. See also Jad
Mouawad, 'Oil Innovations Pump New Life into Old Wells,' New York Times, March
For further information:
For further information: Corporate Communications, Melissa Pelto: (604)
688-5007, Email: firstname.lastname@example.org