MegaWest Snags Devils Basin Acreage
MegaWest Energy Corp.
Friday, August 01, 2008
MegaWest Energy Corp. acquired the Devils Basin play in Montana.
MegaWest has added the Devils Basin play to the existing Teton and Loma plays in its Montana focus area. MegaWest's acreage includes demonstrated light oil production from the Heath Shale from vertical wells. Upon completion of acquisition earning ($150,000 cash, 100,000 shares of MegaWest, and a carry of its partner's 25% working interest cost for the first well), MegaWest will own 6015 net acres (75%) of the 7260 acre play. Seismic will be used to identify prospective drill locations and MegaWest plans to test the play with a horizontal well.
Field work is already under way for the acquisition of new 2D seismic over MegaWest's existing Teton and Loma plays. Interpretation of this seismic should lead to the drilling of a number of wells to test the plays. The Company will evaluate the reservoir at Teton for potential development through the application of SAGD, steam drive or cyclic steam stimulation. It is hoped that drilling of the Loma play will prove up a light oil discovery.