Following the early success achieved and in looking to advance development of the West Florence project, the joint venture is now planning the drilling of a further well in order to evaluate the potential of the Pierre Shale Formation.
This fractured shale historically produced about 15 million barrels up to the 1940s from the adjacent Florence Oil Field.
A modern well, the Javernick Royal Gorge#1, located approximately 4 miles SE of West Florence-1, was completed in 2005 and is currently flowing oil at a rate of 100 barrels of oil per day from the Pierre Formation.
Additionally the joint venture is now planning a 3D seismic survey in the West Florence acreage to advance development of the project.
The total gross leasehold of 25,000 acres provides the participants in the West Florence project with a significant leasehold position. Victoria Petroleum N.L. holds a 25% working interest in 12,000 acres and up to a 17.5% working interest in 13,000 acres.
West Florence-1 is the first well to be drilling in the West Florence Oil and Gas Project and its associated leasehold of 12,000 acres located in the Florence sub basin of the Denver basin. The leasehold is approximately 160 kilometers south of Denver, Colorado, USA.
The project area is to the west of the Florence Oil Field, which produced approximately 15 million barrels of oil from fractured shales of the Pierre Formation up to the 1940’s.
The prospective resource for the West Florence play as estimated by the Operator ranges between 100 BCF and 200 BCF of recoverable gas in the sands of the Muddy ‘J’ and Dakota Formation, and cumulatively up to 15 million barrels of oil for the three secondary targets, the Pierre, Niobrara and Codell Formations, if oil or gas be present.
Commenting on the installation of a pump and production facilities at West Florence-1 and commencement of production testing, Victoria Petroleum managing director John Kopcheff said:
"Victoria Petroleum is pleased to have started oil production from this well to and is looking forward to establishing the long term productivity of this well on pump and to advance development of this project."
"The first up success with West Florence-1 from these zones alone augurs well for the interpreted presence of a large oil and gas development opportunity over the large acreage position held by the project."
"We envisage a scenario based on adjacent historical production of numerous modest rate producing oil wells with the potential to providing cumulative significant oil production. Further testing and drilling success is required to establish this scenario."
The participants in the drilling of West Florence-1 and the West Florence Oil and Gas Project and their respective interests through their wholly owned subsidiaries are as follows:
Mountain Petroleum Corporation. (Operator) 25% Victoria Petroleum N.L. (ASX code: VPE) 25% Fall River Resources Limited (ASX code: FRV) 15% Adelaide Energy Limited (ASX code: ADE) 15% North American Oil Gas Energy Pty Ltd 5% Private American Interest 15%
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