Taking a chance on new technology can pay. Warren Resources Inc. did this in its Wilmington Townlot Unit in Los Angeles-a new and unique well-placement technology, PeriScope 15, a product of Schlumberger, and the results have been amazing. The field, discovered in 1936, has been drilled extensively with vertical wells chasing four producing horizons-Tar, Ranger, Upper Terminal and Ford. Since 1971, Upper Terminal has been under waterflood. It was this project that piqued Warren's interest in the late 1990s. Warren bought 50% of the field in 1999 from a small operator. "Oil prices went up almost immediately after we signed the deal," says Ken Gobble, Warren senior vice president. "The seller did everything it could to unwind the deal." In February 2005, Warren purchased the other 50% of the field, and work began on a sub-zone redevelopment. While drilling new vertical wells to Upper Terminal, Warren engineers noticed the shallower Tar formation still showed good oil saturation, albeit heavy oil. It also has a partial water drive, unlike the other zones. For more on this, see the September issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
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