Oil & Gas Operations Overview

Signal Hill Petroleum produces domestic energy resources using safe, responsible and environmentally conscious methods.

Our mission is to be a safe, profitable, and long-term sustainable oil and gas production company in all commodity price environments. We strive to increase our production rates by means of efficient and effective reservoir techniques.

To Signal Hill Petroleum, sustainability means that we constantly assess our operations to ensure that we use the best available technology and business practices. It is our goal to leave behind as little ecological footprint as possible and be a positive member of our community. We must meet today's needs without compromising the ability of future generations to meet their needs.

Signal Hill Petroleum has gone through every aspect of our business to ensure that we are using electricity and equipment as safely and efficiently as possible.

We are mindful of our electricity consumption to power the wells and our office building. We have a proactive maintenance schedule. Our company has continual equipment upgrades in an effort order to be as environmentally friendly as possible. We have an electricity saving program. Signal Hill Petroleum is a partner with our local wetlands to help preserve and enhance the environment. Below are some examples of how we have made our company's operations more sustainable.

Emissions Control Natural Gas Turbine Generator:

In 2004, Signal Hill Petroleum invested in a cutting-edge, emissions control electrical turbine generator that uses our own natural gas to power our operations.

What would otherwise be stranded gas, a bi-product from the oil production, is turned into the cleanest electricity in the country. This electricity accounts for 70 percent of all the electricity we use for production. Our company was the first to implement this system in Southern California and meet the latest emissions standards.

By using our own production bi-product, we save local energy resources and produce cleaner electricity in our process.

Community Friendly Exploration Methods:

Signal Hill Petroleum has invested in low-impact, efficient seismic technology through our affiliate company, NodalSeismic, LLC. Our breakthrough, completely cable-free seismic data acquisition has allowed for routine data acquisition with minimal community and environmental disturbance.

Our method, combined with the technology, has allowed our company to image the subsurface strata in high-dense urban areas. Signal Hill Petroleum has also shared our seismic data with academic institutions and government entities: Cal Tech, CSULB, UC Berkeley, and Stanford University. This use of technology enables us to drill more effectively by allowing us to pinpoint the optimum locations to drill and utilize resources in the most efficient way possible.

Pump-Off Controllers:

The pump-off controller is attached to the pumping unit. The controller only allows the pump to run when it meets the point of highest efficiency.

It automates production by monitoring and responding to "down-hole" conditions to diagnose inefficient runtimes and downtimes, such as stuck pumps, worn pumps, and any other problems that might occur. It addresses these problems at the moment they happen as opposed to weeks or months after the incident. We have been installing this technology for the last 10+ years.

Pump-off controllers increase the efficiency of the production process. They save electricity by shutting the pump down when it fails to produce. This increases the lifetime of the pumping units, saving them from unnecessary wear and tear. The pump-off system is computer based. Team members can control and monitor 90% of the wells from the office and respond immediately to changes in pumping.

Utility Power: Bryant Lease Power Program:

Our company has 10 production wells and 2 water injection wells on the Bryant lease property, located in the Los Cerritos Wetlands.

In the last 10+ years, Signal Hill Petroleum has strategically partnered with a utility company. The operations at this property are in a program that automatically shuts down operations if there is a shortage of power on the electrical grid. This ensures that homes receive the electricity, not the operations, in the event that the State of California has electrical grid supply issues.

Signal Hill Petroleum is part of the Los Cerritos Wetlands environmental stewards program and assists in preservation and restoration.

Electrical Drilling Equipment:

Signal Hill Petroleum's new, all electrical, drilling rig was running as of December 2011. It has a high-efficiency motor and breaking system, which makes it cleaner as it does not require diesel to power it, and it is neighbor friendly because it is much quieter than diesel-powered rigs.

Our company's emissions control natural gas turbine provides the majority of the electricity needed to power the drilling rig.

Cleaner Engines:

The older rigs have been retrofit with cleaner, quieter Tier 3 and Tier 4 engines. The trucks are all cleaner burning, low sulfur emissions diesel engines. Tier 3 and Tier 4 standards are the most stringent of diesel off-road engine standards. The Tier 4 standards require that emissions of particulate matter and nitrogen oxides be further reduced by about 90% from Tier 3's.

We have been retrofitting the rigs with cleaner burning engines for the last 10-15 years.

Diesel trucks:

In the last few years, the company has upgraded every field crew to shift fleet in switching from unleaded gasoline to the cleaner alternative: diesel. Newer, more efficient, diesel engines have ultra low sulfur emissions.

According to the EPA and the Air Resources Board's estimations in 2007, the tier 3 and 4 controls will reduce emissions from each engine by as much as two-thirds from the levels of previous standards. Studies show that nationwide NOx inventories will be reduced by about a million tons per year by 2010, with benefits increasing annually as the new cleaner equipment replaces older machines in the field.

Routine Hydro Testing:

Our company continually tests the pipes in segments to stay ahead of our two year hydro testing requirement.

We are proactive with our maintenance to ensure that there is no possibility of a leak by testing our pipes every year, regardless of the age of the pipes.

Facility Tank Replacement:

As an environmental safeguard, we make sure that our facility tanks are of the highest standard to ensure that the oil is always kept in a safe, controlled location.

Smart Well Drilling Program:

Signal Hill Petroleum's drilling techniques reduce the amount of water we handle, saving electricity and company resources.

To yeild 3,000 barrels of oil, we produce 97 thousand barrels of water. By making the operations more efficient, we produce less water and more oil. This allows our company to use smaller motors, which use less electricity. This saves time and resources that would otherwise be used to manage the water once it is out of the ground.

Heating, ventilation and air conditioning systems (HVAC):

We use the most efficient technology to heat, ventilate and keep our offices at comfortable levels. They save electricity, which saves the electricity used on the grid. The HVAC system in the current building was installed a few years ago.

Signal Hill Petroleum believes in the importance of sustainability as it relates to the oil and gas industry. Through smart drilling practices, operations efficiency, emissions controls, electricity conserving programs, proactive maintenance, and low-impact exploration methods, Signal Hill Petroleum is able to be a sustainable energy company.