East West Petroleum Corp. and Lani LLC on Monday said they jointly plan to explore two prospective areas in California’s San Joaquin Basin, the Tejon Extension and Tejon Main.

Under a farm-in agreement and area of mutual interest with Lani, East West said the partners would develop 3,200 net (4,500 gross) acres in a leasehold between the Tejon North and Tejon fields. The formations together have produced more than 100 million boe, according to East West.

Canada-based East West, which was formed two years ago, said it would contribute $2.5 million to Lani’s exploration program over the next four to six months to gain a 25% stake in the Tejon Extension and a 21.25% participation interest in Tejon Main. Two exploratory wells are planned. The partners also want to acquire at least another 7,000 gross acres, East West said.

Sproule and Associates has estimated the unrisked gross resource potential of the Tejon Main and Tejon Extension areas at 11.16 million boe, “with a probability of success ranging from 30-80% across a number of target zones,” said East West. A drilling rig has been contracted to test several sands to a depth of 7,500 feet. Under the terms of the AMI, Lani would be the operator.

More than 35 billion boe has been discovered in the San Joaquin Basin, which is undergoing a revival as producers unlock unconventional oil and natural gas targets. In 2009 Occidental Petroleum Corp. announced that it had discovered 150-250 million boe conventional discovery in the basin’s deeper geological section. Current production from Occidental’s discovery is about 150 MMcf/d and 7,500 b/d liquids.