The Moon Canyon #2 well was drilled on a 22 square mile proprietary 3D seismic survey. Several potential Dakota sandstone reservoirs with over 50 feet of potential pay remain to be tested in the well. The new Royale well offsets a Dakota well drilled in 1961 with over 2 billion cubic feet of gas.
With the successful test in the Morrison formation and the established productivity of the Dakota formations, the Company is planning additional drilling on offset locations. The company has also begun a new 13 square mile 3D seismic survey to evaluate the highly prospective northern portion of its acreage position in this area.
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