It's been a painfully slow process for the partners, but an immense natural gas field looks to be taking shape in the heart of California's San Joaquin Basin. Back in November 1998, the East Lost Hills blowout thrilled the industry. That's when the Bellevue Petroleum #1-17, located in Section 17-26s-21e, Kern County, began spewing an estimated 100 million cubic feet of gas and 1,500 barrels of condensate per day into the dry California air. After six months, the Bellevue #1-17R relief well was able to kill the discovery, intercepting the uncontrolled wellbore at 16,000 feet. Then, the relief well was sidetracked and a replacement wellbore was drilled about 180 feet into the Temblor reservoir. At completion point, Calgary-based Berkley Petroleum took over operations from Bellevue Petroleum. The #1-17R tested gas at rates ranging from 1.3- to 5 million cubic feet per day, but mechanical problems plagued the completion attempt. "We were strongly encouraged by the tests, but the formation was heavily damaged and we couldn't stimulate the reservoir through the uncemented liner," says Scott Singdahlsen, president of Denver-based PYR Energy Corp., a working interest owner in the East Lost Hills project. "We temporarily abandoned the replacement well." The news since has improved markedly, however. At press time, the Berkley group's #1 East Lost Hills, in Section 6-26s-31e, was ready to begin gas sales. Surface facilities and a pipeline tie-in were being completed, and the well was nearly ready to produce into the premium California market. The #1, a two-and-a-half-mile northwest offset to the blowout well, was drilled to a total depth of 19,724 feet. The hole penetrated 2,474 gross and 1,410 net feet of Temblor, and on an extended test of perforations between 19,370-19,698 feet it flowed at the rate of 13.1 million cubic feet of gas per day. The water/gas ratio was 295 barrels per million cubic feet and the condensate/gas ratio was estimated at 75 barrels per million. Although the Upper Temblor sand that blew out in the #1-17 was present, the #1 well was actually completed in a basal Temblor sand called the Phacoides. One of the goals of the #1 well was to drill the entire Temblor section, notes Singdahlsen. The partners particularly wanted a close look at the Phacoides, since that zone and its equivalents have made more than half of the Temblor's cumulative production in the basin of 2.5 billion barrels equivalent. "We were able to drill about 350 feet into the Phacoides, which is typically about 500 feet thick," he says. "The sand was gas-charged, fairly clean with good porosity, and the well flared repeatedly while drilling through it." The water production noted on the test is not worrisome, he notes. "Wells in the San Joaquin Basin in the Temblor group usually make water, and the test was typical of producing wells in that zone." What was atypical, however, was the initial reservoir pressure of 16,964 pounds per square inch. "That's a tremendously overpressured reservoir-we are looking at a formation volume factor of around 400. That means we can put a tremendous volume of reserves into an area of moderate size." Meanwhile, the appraisal work continues. Berkley has three additional wells under way on the East Lost Hills feature. The #2 is in Section 36-25s-20e, about one-and-a-half miles northwest of and on strike with the #1. At press time, that test was drilling at 17,600 feet. "We've drilled through the First Carneros sand and it looks as good as we expected," says Singdahlsen. About a mile southwest of the blowout well, the #3 is drilling in Section 20-26s-21e. This test is on the west flank of the East Lost Hills structure, on a slightly different structural splay. That well was drilling ahead below 16,000 feet. Also, the Berkley #4 was ready to spud at press time. The Section 27-26s-21e well is projected to 20,000 feet, with a dry hole cost of $12.5 million. It is slated to penetrate the entire 3,000 feet of Temblor. "To date, we've learned that we have commercially deliverable gas and condensate at the very top of the reservoir, and we have commercially deliverable gas and condensate at the very bottom of the reservoir," he says. Four intervening sands have not yet been tested, but based on log analysis and drilling records, also appear to be gas saturated. "The partners are making a dramatic capital commitment to East Lost Hills, and so far our results are very exciting," says Singdahlsen. "We're anxious to begin selling gas."