PRIMARY PETROLEUM (PIE:TSX.V and PETEF: OTCQX) is pleased to provide you with the following updates on the other Industry Partners operating in the Southern Alberta Basin in NW Montana.
Dont Forget The Southern Alberta Bakken
Posted: Nov 11, 2011 17:19 PM
by
Eric Fox
While
most investor attention is focused on the development of the Bakken
formation in the Williston Basin, the industry also progressed on the
same play in the Southern Alberta Basin in Montana during the third
quarter of 2011.
Southern Alberta Basin
In 2008, the U.S.
Geological Survey (USGS) estimated that the Bakken formation in North
Dakota and Montana holds anywhere from 3 to 4.3 billion barrels of
undiscovered, technically recoverable oil.
The USGS estimate only covers
the Williston Basin where most industry development has occurred to
date.
The Bakken is also present in the southern portion of the Alberta
Basin, which extends into several counties in Northwestern Montana.
If
the industry can prove up this play here, it would mean that the Bakken
is even more prolific than current estimates indicate.
Active Operators
Rosetta Resources (Nasdaq:ROSE)
is in the midst of a seven-well horizontal drilling program to test the
commercial potential of the Bakken on the companys acreage in the
Southern Alberta Basin. The company finished drilling three wells here
during the third quarter of 2011, and recently started on a fourth
horizontal well.
Rosetta Resources has completed one horizontal well in this program
and is currently testing this well.
The company expects to complete and
start testing two more wells during the final quarter of 2011.
Rosetta
Resources plans to drill and complete the final four assessment wells
during the first quarter of 2012.
Newfield Exploration (NYSE:NFX)
has drilled nine wells in the Southern Alberta Basin and is almost
finished with the companys assessment program.
The company recently
reported that the first horizontal well in this program produced at an
initial rate of 225 barrels of oil equivalent (BOE) per day, with only 33% of the lateral producing.
Newfield Exploration does not have to rush into another development
program as the company estimates that 80% of its 340,000 net acre
position is held by production.
FX Energy (Nasdaq: FXEN) has drilled three vertical wells through the Bakken group.
Logs, cores and tests were as good as or better than expected.
Last month drilled one horizontal leg with fracking to commence later in November.
A fourth drilling permit and 2nd lateral are pending the outcome of the frack operation later this month.
FX Energy s Operator on 1/3 interest in approx.
75,000 net acres with American Eagle Energy (Nasdaq: AMZG) and Big Sky Operating, LLC.
Dpending on the results of the frack completion later this month, FX Energy plans to drill up to six more wells in the first half of 2012.
Watching
Since the development of the Bakken in
the Southern Alberta Basin is still at an exploratory stage, many
operators are watching the progress of other industry players before
committing resources here.
Abraxas Petroleum (SMCAP:AXAS)
has 10,000 net acres in the Southern Alberta Basin and did not allocate
any funds for drilling here in 2011. The company has been adding to its
leasehold here and plans to monitor the results of others before moving forward.
Quicksilver Resources (NYSE:KWK)
has 175,000 net acres under lease in Glacier and Toole Counties in
Montana. The company is currently inactive in this play as it allocates
scarce funds to other areas of its portfolio.
"Were with a tight
budget, thats an area where we just decided not to spend dollars until
we got more clarity," said Glenn M.
Darden, the CEO of Quicksilver
Resources, during a recent conference call. Quicksilver Resources is
also considering a joint venture partner here to share the cost and risk of development.
Stone Energy (NYSE:SGY)
has 35,000 net acres and is also dormant in this play, with the company
putting most of its funds into the Gulf of Mexico and the Appalachian
Basin.
The Bottom Line
If the exploration
and production industry finds the Bakken to be commercial in the
Southern Alberta Basin, it will lead to another upward revision to
the level of oil resources present in this play in North Dakota and
Montana
Primary Petroleum Corp
Suite 800, 744 4th Avenue SW
Calgary Alberta T2P 3T4
Canada
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