VANCOUVER, British Columbia, April 8, 2002 (PRIMEZONE) -- Olympic Resources Ltd. (Olympic) (OTCBB:OLYRF) (CDNX:ORL) provides the following update of its East Corning Property in Tehama County, California. Olympic has entered into three participation arrangements in the Victor Ranch gas field which lies on the south-east flank of Olympic's East Corning property. The operator has advised Olympic that these three wells are producing approximately 4 MMCF gas per day and that all natural gas is being sold on a Gas Daily Index currently priced at $3.59 per MCF. The terms of the participation agreements provide Olympic with an 8.3% working interest in two wells; and a 6.05% working interest in the third well.
The first well, Victor Ranch 1-7, discovered one of the largest amounts of natural gas filled sands in the East Rice Creek field. An adjacent 3-D survey reveals that this discovery extends onto Olympic's East Corning property. Four different gas-charged zones were encountered and preliminary log analysis indicates two main pay zones in the well contain 70 to 80 net feet of gas-charged sands. Other gas wells in this area have been producing from similar zones for over ten years.
Olympic holds a 32% working interest in the East Corning property consisting of 6,500 acres in oil and gas leases, and a recently completed 3-D seismic survey. Olympic and partners will commence a multiple well drill program in late April. 3-D results have identified several bright spots analogous to similiar nearby producing fields.
Olympic's property lies adjacent to the Corning Gas Field to the east and directly north of the Rice Creek gas field. It is analogous to the East Rice Creek field and is one of the few underexplored regions remaining in California. Well density and Forbes penetrations are sparse within the project area. The East Corning Project had never received 3-D seismic coverage despite being on trend with prolific Forbes production to the south. 3-D coverage directly south of the project has established numerous pools including Rice Creek (35 BCF, primarily Forbes) and Malton Black Butte Field (132 BCF, Kione and Forbes).
"We are extremely pleased with the progress we have made especially now that natural gas prices have begun to firm up," said Daryl Pollock, President of Olympic. "Given the prospects identified by the 3-D data, we believe that this project could be very productive."
To find out more about Olympic Resources Ltd. (CDNX:ORL) (OTCBB:OLYRF), visit the Website at www.orlresources.com.
The CDNX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
WARNING: The Company relies on litigation protection for "forward-looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.