SAN JOAQUIN RESOURCES INC.
#1305 - 1090 WEST GEORGIA STREET
VANCOUVER, BC V6E 3V7
TEL: (604) 685-9316 FAX: (604) 683-1585
(OTCBB: SJQR)
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NEWS RELEASE OCTOBER 10, 2000
J. Timothy Bowes, President of San Joaquin Resources Inc., reports that the
Company's stock has been cleared for trading on the OTC Bulletin Board by NASD
Regulation, Inc. under the symbol "SJQR". The Company's subsidiary, San Joaquin
Oil & Gas Ltd., was formed in September 1999 to acquire oil and gas prospects in
the San Joaquin Basin of Southern California.
DIRECTORS
The President, CEO and Director of San Joaquin Resources Inc. is J. Timothy
Bowes. After graduating in 1981 from the University of British Columbia with an
MBA, Mr. Bowes worked in the oil and gas exploration and production business as
a Petroleum Landman. Prior to entering into the investment banking business in
1994, Mr. Bowes was Manager of the Land Department for a large Canadian oil and
gas company. In the investment banking business, Mr. Bowes worked for Yorkton
Securities Inc., specializing in the oil and gas sector. Upon leaving Yorkton
Securities Inc. in March, 1999, Mr. Bowes was a Vice President (subject to
regulatory approval).
Two additional directors of the Company are Mr. Colin McNeil and Mr. Nick
DeMare. Mr. McNeil graduated in 1966 from the University of Calgary with a
Bachelor of Science (Geology) degree. Shortly after entering into the oil and
gas business, he specialized in geophysics. In 1994 he left a large Canadian oil
and gas producer with his last job being Manager of International Exploration.
During the past six years, Mr. McNeil has been employed as a geophysics
consultant specializing in international exploration. In this capacity he served
as a Director of several Canadian companies listed on Exchanges in Canada.
Mr. Nick DeMare graduated in 1979 from the University of British Columbia with a
Bachelor of Commerce degree. Mr. DeMare is a Chartered Accountant, whose
practise is primarily associated with small companies in the mining and oil and
gas business. He is the president of Chase Management Ltd., a private British
Columbia company which provides a broad range of administrative, management and
financial services to private and public companies with varied interests in
mineral, oil and gas exploration and development assets. Mr. DeMare has served
as a director of many publicly traded companies in Canada during the past ten
years.
ACTIVITY
During the past year, San Joaquin Resources Inc. has been developing and
acquiring prospects in the San Joaquin Basin. As of September 30, 2000, all of
the Company=s projects are without known reserves and the Company=s operations
are exploratory in nature. There are no assurances that the Company will
discover sufficient economic reserves and successfully develop its prospects. To
date, the Company has developed the following prospects where it has acquired
oil and gas leases:
WILLOW SPRINGS PROSPECT
Location: West side of the San Joaquin basin in Townships 29 and
30 South, Range 21 East, Kern County, California.
Leases: To date the Company acquired one petroleum and natural
gas lease containing 65 acres from the United States
Department of the Interior, Bureau of Land Management
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and over 650 acres of freehold oil and gas leases. The
leases will have a lessor royalty of between 12.5% to
20% with a term ranging between two to ten years.
Ownership: The Company has a 100% working interest in the leases
it acquires on the Willow Springs Prospect and net
revenue interests of 77% to 84.5%.
Access and Topography: The Willow Springs Prospect is situated in low hills
with some small ravines. The proposed surface location
of an exploration well is accessible by paved and well
graded dirt roads.
Geological Description: The Willow Springs Prospect is a four way closed
anticline defined by well data including stratigraphic
correlation, dip meter and core dip. The primary
reservoir targets are the Phacoides sandstone, Oceanic
sandstone, and Point of Rocks sandstone. The Phacoides
and Point of Rocks sandstones are trapped by four way
closure whereas the Oceanic sandstone is trapped by a
combination structure and stratigraphic trap. The seal
with respect to the prospect is over 6,000 feet of
shale dominated by Monterey and Temblor formation. The
prospect size is approximately 550 acres for the
Phacoides sandstone, 320 acres for the Oceanic
sandstone, and 500 acres for the Point of Rocks
sandstone. An exploration well to test this prospect
would be roughly 8,000 feet (MD). It is expected that
the gravity of the oil, should it be found, will be in
the range of 35(degree)to 50(degree)API (a measurement
of the density of liquid petroleum). Light crude oil
generally has an API of between 35(degree)to
45(degree); therefore, management believes the API of
the oil is economical to produce. This range was
obtained from offsetting fields.
CROCKER CANYON PROSPECT
Location: The Crocker Canyon Prospect is located on the west side
of the San Joaquin basin in Townships 30 and 31 South,
Range 21 East in Kern and San Luis Obispo Counties,
California.
Leases: The Company acquired on March 16, 2000 two United
States Department of the Interior, Bureau of Land
Management petroleum and natural gas leases totalling
2,732 net acres which cover the prospect. These leases
are for a ten year term with a 12.5% lesser royalty.
Ownership: The Company has a 100% working interest in the Canyon
Creek Prospect, with an 84.5% net revenue interest in
the prospect.
Access and Topography: The surface area is mountainous with steep ravines. The
proposed exploration well drill site is accessible by
paved and well graded dirt roads.
Geological Description: The Canyon Creek prospect is a four way closed
defined by well data Geological Description: including
stratigraphic correlation; dip meter and core dip. The
primary reservoir targets are the Carneros sandstone,
Phacoides sandstone, Oceanic sandstone and the Point of
Rocks. For the Carneros sandstone the closure area
prospect size is between 2,150 to 3,400 acres with the
remaining three reservoirs having a closure area
(prospect size) of between 2,000 to 3,150 acres. The
seal for this prospect is over 8,000 feet of shale
dominated Monterey and Temblor formations. An
exploration well to test this prospect would be drilled
to approximately 10,000 feet (MD). It is expected that
the gravity of the oil would range between 35(degree)
to 50(degree); therefore, management believes the API
of the oil is economical to produce. The estimated API
based upon the gravity of oil in offsetting fields.
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San Joaquin Resources Inc. News Release
October 10, 2000 Page 3
OTHER ASSETS
San Joaquin Resources Inc. acquired four membership interests in Hilton
Petroleum Greater San Joaquin Basin Joint Venture LLC (AHilton LLC@), a Colorado
limited liability company, for an investment of $398,000. As of December 31,
1999, the Company owned 20% of Hilton LLC=s membership interests, which in turn
owns a 2.25% working interest in various prospects in the San Joaquin Basin. The
Company has subsequently elected not to fund any further capital contributions
for Hilton LLC and expects to have its interest in Hilton LLC converted to
shares of Hilton Petroleum Ltd., the manager of Hilton LLC, pursuant to the
terms of Hilton LLC=s operating agreement. The number of shares will be based
upon the average of the closing price of the shares of Hilton Petroleum Ltd. on
the Canadian Venture Exchange for the 30 days immediately prior to September 30,
2000.
EXPLORATION STRATEGY
Currently the Company is in the process of providing reviews of the Willow
Springs and Crocker Canyon prospects to a variety of third parties. The strategy
is to farmout all or a large portion of San Joaquin=s 100% working interest in
these two prospects in order to obtain back the capital it has invested, along
with having a well drilled on each prospect in 2001. The capital the Company
receives for the two prospects will be used to finance a participating interest
in the two prospects, along with the acquisition of oil and gas leases on
additional prospects the Company has.
NEW SHARE ISSUE
In order to fund the capital program of San Joaquin Resources Inc. in 2001, a
new share issue will be required. Currently the capital market for junior oil
and gas exploration companies is weak, thereby making it difficult to raise
additional capital by selling shares to new investors. This situation may change
in the foreseeable future, given the recent increase in the price of oil and
natural gas, however, there are no assurances the situation will change.
NEW OPPORTUNITIES
It is the Board of Directors= desire to obtain new opportunities for San Joaquin
Resources Inc. which will materially increase the value of San Joaquin Resources
Inc.'s shares.
ON BEHALF OF THE BOARD,
"J. TIMOTHY BOWES"
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J. Timothy Bowes,
President
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