Harry Bygdnes, President of County Line Energy, announced that the company has signed a letter of intent with Energy Dynamics Corporation (EDC) on two significant oil properties in Dawson County in east Montana. The company will conduct a 45 day due diligence program.
In addition there are three offset well sites on the Titan Lease (new drills) which may be required to have locations determined by a small seismic program.
The wells have been drilled to a depth of 10,000 feet and produced from a zone referred to as the Duperow Formation.
The estimated work over cost for each well is $1.1 million.
Estimated recoverable reserves for each well are 700,000 barrels of oil over a ten-year life span.
It is the intention of County Line Energy to provide 100% of the working capital to initiate the re-entry of the #1 Roth and #1 Titan wells.
The company will earn an 85% payback of revenue until fully paid back reverting to a 43% net working interest after payout.
The drilling cost and timing for the offset wells will be determined after more comprehensive geological and geophysical study.
Most Popular Articles
From the Career Center
Jobs that may interest you