The leases were acquired for cash with the seller retaining a five percent overriding royalty interest in the leases. According to historic geological reports the Company believes that total recoverable reserves from these leases could be over 75 million barrels of oil.
John Punzo, Chairman and CEO of Wentworth Energy commented, "This acquisition gives Wentworth a significant presence in this rich oil sands region of Utah. Our goal now is to identify appropriate extraction technologies, and bring our Utah oil sand leases to production as soon as possible. In addition, these leases are also believed to contain oil and gas reserves that can be extracted using conventional drilling technologies."
"Our land position in the Asphalt Ridge area is of a size where it makes economic sense to commence recovery of the bituminous sandstone deposits contained in the oil sands," said Jim Whiteside, President of Oil Sands Development at Wentworth Energy. "We are now reviewing several new extraction technologies that have been developed over the past several years. We expect to select one of these new alternative technologies and build a pilot plant in the next few months."
"Wentworth's oil sand leases are located within the largest bituminous sandstone deposit in Utah's Uinta Basin," Whiteside noted. "The oil-saturated sands are in the Mesa Verde Group and the Duchesne River Formation and have been identified at varying depths from the surface to 250 feet. This means that the oil can be recovered using open-pit mining techniques, which is a very cost effective method."
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