County Line Signs LOI for Significant Montana Drilling Program
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.