Ameriwest Enters Option to Purchase Cole Creek Oilfield, Wyoming
Ameriwest Energy Corp. has entered into an exclusive option to purchase (the "Agreement") the Cole Creek Oilfield Unit and Adjacent Leases located on or near the Cole Creek anticline in Natrona and Converse Counties, Wyoming. These interests include leasehold, production, reversionary interests, reserves, and equipment purchased from Alpha Development Company and JK Minerals.
There are approximately 14,000 gross acres of leasehold on or adjacent to the Cole Creek Anticline of which 7,800 acres are within the Cole Creek Unit and the balance in various Held By Production ("HBP") and term leases. Within the Cole Creek Unit, Ameriwest is purchasing slightly more than 68% of all formations from the surface to the base of the Shannon Formation which is at 4500 feet and will be operated by Ameriwest. Below the base of the Shannon formation, Ameriwest will own approximately 35% of the working interest in the productive formations which are Frontier, Dakota, and Lakota and the same percentage of the potentially productive formations which are the Niobrara Shale, Muddy Sand, Mowry Shale and the Tensleep Sand.
The Original Oil in Place ("OOIP") in the Shannon, Frontier, Dakota, and Lakota formations has been calculated in an early study by Mobil Oil and recently studied by an independent geologist in 2001. These earlier noted assessments indicate the OOIP was estimated at 125,298,000 standard barrels of oil ("STBO") of which, the Wyoming Oil & Gas Conservation Commission estimates that 18,565,000 STBO has been produced from the field to-date. Presently, NITEC LLC of Denver,
Colorado is substantiating these numbers as well as calculating the recoverable reserves by tertiary recovery methods. Currently, the existing operational wells within Cole Creel Field are producing a cumulative 225 Barrels of Oil Per Day ("BOPD").
It is estimated that upon completion of due diligence and acceptance by all parties, that the agreement could close within the next few months.