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Tearlach Resources Ltd. (www.TSX.com: Symbol TEA) is developing and has brought to production a portion of the Kern Front Oil field (8 Leases of oil producing properties) which are located about 11 miles north of the City of Bakersfield, Kern County, California. Field development and oil recovery operations are operated by Tearlach Resources Ltd. and United Pacific Energy Corporation (“UPEC”) (www.upecglobal.com).
Kern Front
 Kern County is currently producing an average of 577,000 barrels of oil per day, making it the fourth largest producer of oil in the United States.
Based on total production for 2000, the Kern Front Oil Field ranks as the 10th largest producer of oil in the state of California. The portion of Kern Front Oil Field owned by the joint-venture of Tearlach and Western States International underwent development starting only in 1976. Approximately one-half of the total acreage has been developed.
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.
Initial well production ranges from 20 to 60 Barrel of Oil per Day with the average well in the lease areas producing 1 to 10 Barrel of Oil per Day (Kujawa, 1981). After cyclic steam stimulation, 50 to 300 Barrel of Oil per Day production is common for a well in the Chanac and Etchegoin horizons. The biodegraded character of the heavy oil (14-15◦ API) and the relatively shallow depth (approximately 1800 ft) make the Kern Front oil field a potential area for steam-drive production” (Link et al. 1986; Long, 1986) and other Enhanced Oil Recovery Technology.
Western States International, Inc. acquired the leases in the Kern Front Field from 2003 to 2005. These leases have not been in production since 1998. The previous operator discontinued operations within the field for matters unrelated to oil production. Starting from mid- 2003, the oil leases underwent a development with the most advanced technology applied by UPEC and the first oil was sold December 11, 2006.
The Operator, UPEC, which also specializes in Enhanced Oil Recovery Operations, has advised the Company that 63 wells (out of 201 wells) will be put back to production by the end of 2007.
A testing program is ongoing to determine optimal producing rates. During this production testing period, the operator will also be trying out several new technologies to estimate productions.
Historical production records indicate this area of the Kern Front Field produced a maximum rate of 6,203 barrels of oil per day from 186 wells. This is the target rate of the joint venture using enhanced oil recovery technology.
As this information contains estimates of value the reader is referred to Company’s disclaimer of safe harbor appearing elsewhere in this web page.
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