Round Mountain Oilfield

(100% working interest)

The Round Mountain Oilfield lease, covering 320 acres, was acquired in 2011.  The Round Mountain Oilfield is situated in the San Joaquin Basin north east of Bakersfield.

The Round Mountain field has produced over 100 million barrels of oil. Most of this production was in the early part of the 20th century.

The main reservoir section is at a depth between 1200 ft and 1600 ft and has moderate to excellent permeability and porosity. Modern drilling techniques, such as horizontal drilling, have been used since 1998 to revitalise the oilfield. The oil is of moderate gravity and does not require heating or steam injection to be produced at commercial rates, but steaming has been used successfully to enhance production in parts of the field from the Pyramid Hill reservoir.

IOG has drilled eight wells to date on its Round Mountain Lease. Smoot 1, 2, 7 and 8 are vertical wells and produce from the deeper Walker reservoir. The initial production rate in Smoot 1 was in excess of 100 bopd, resulting in a short payout of the drilling cost. Smoot 3 is a horizontal well with a horizontal section exceeding 800 feet. It drains the middle reservoir in Round Mountain and produced at an initial rate exceeding 30 bopd with no appreciable water but has since declined. Smoot 4 is an inclined well that was designed to evaluate the southern part of the IOG lease, and intersected significant pay in the upper and middle reservoirs. The initial oil production rate was about 25 bopd but this has declined to 3 bopd. Smoot 5 was an outstep well that was also designed as a water disposal well.  Most of IOG's produced water is disposed of in this well, at no significant cost to the Company.  Smoot 6 is a vertical well into the middle reservoir.  Although it produces at commercial rates, its performance has been disappointing and the well is currently shut in.