Forest Gate Resources has acquired a license targeting Bakken Formation hydrocarbons in South Eastern Saskatchewan.
The terms of the lease allow Forest Gate to undertake oil and gas exploration, development and production on two-quarter sections, or 320 acres, near the town of Estevan, Saskatchewan.
According to industry reports, Bakken Formation oil exploration in the area has resulted in production of nearly five million barrels annually according to 2007 figures. Bakken wells tend to be highly productive, producing 200 barrels a day or more of sweet, light crude oil with 41-degree gravity(x).
Petrobank, TriStar and Crescent Point Energy Trust are among the companies currently producing oil in this area of South Eastern Saskatchewan. Another prominent player is Talisman Energy, with over 200 development wells identified, 22 of which were planned for drilling in 2008, in proximity to Forest Gate's newly acquired acreage near the town of Estevan.
Of particular interest is Crescent Point Energy Trust, with a dominant position at the Viewfield Bakken, and currently producing in excess of 14,000 boepd, with post fracture stimulation production rates of 200 boepd per well. The Trust's wells in the Viewfield Bakken are also in the vicinity of Forest Gate's newly acquired property.
"The industry estimate of Bakken oil in this area of Saskatchewan is in the 100 billion barrel range," said Michael Judson, President and CEO of Forest Gate. "This is a great place in which to develop our business."
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