Coastal Petroleum Says Valley County Leases Show Gas
Spudded one week ago, the well has confirmed that the 34,000-acre structure it was drilled to test is high as expected at the well’s location. The well is high in the direction of all of the nearest wells. The height of the structure compared to surrounding areas allows it to trap migrating gas.
Drilled to a total depth of 1,126 feet, the well drilled through the Judith River sand which was a secondary target and then into the Eagle sand which was a primary target of the well.
"Both horizons were high and in both horizons there were gas shows, meaning there is the potential for gas production," said Phillip Ware, president and CEO of Coastal Caribbean Oils & Minerals. Casing has been run into the hole. Completion operations will be necessary to test the extent of the gas production from these zones and will commence as soon as possible. Permitting is continuing for the four step-out wells needed to quantify reserves and which could test the other four objective formations below which may also contain gas.
Western Standard Energy Corp. holds a 100% working interest in the well until payout when it will reduce its interest to 80% and Coastal will own 20%. Upon completion of the test well, Western Standard will have the option to acquire a 50% interest in approximately 42,000 net acres of Coastal’s Leases near the test well for $1,000,000, payable in five equal installments the timing of which is tied to drilling the four step-out wells to evaluate the field.
- Coastal Petroleum Regains Full Control of Shallow Gas Prospect Leases (Dec 15)
- Coastal Petroleum Enters Farmout Agreement on North Dakota Leases (Dec 12)
- Coastal Petroleum Says Valley County Leases Show Gas (Oct 30)