Lighthouse Petroleum has provided an operational update pertaining to LHPT’s working interest in the 3,330 Gross Acre Diamond Springs Drilling Prospect.
G2 Petroleum has communicated with LHPT Executive Management team that it intends on drilling two initial test wells with an anticipated spud date of August 1, 2009. The two locations will correlate with the Geosensing data that was commissioned via Force Energy communicated in their press release dated November 24th, 2008. Per the report that was concluded by Hawkeye Geosensing Ltd., there is an approximate 75% success rate that the presence of hydrocarbons exists on the Diamond Springs acreage.
Lighthouse Petroleum Management states, "We are pleased to hear that both G2 Petroleum and Force Energy are proceeding rapidly to drill the initial two test wells on our Diamond Springs drilling prospect. Due to delays imposed by BLM wildlife restrictions, drilling has been delayed from the anticipated timeline G2 had set forth originally."
Lighthouse Petroleum further states, "With costs associated with drilling new wells declining daily, the economics of drilling new wells are coming more in line with current crude pricing. We are excited about this potential find as it could potentially boost shareholder appreciation as well as the entire outlook on how we further develop these 3,000 acres."
Further updates will be provided once the drilling permits have been filed with the BLM as well as any unexpected delays of the anticipated spudding of the initial two test wells.
The Diamond Springs Prospect is composed of three independent but geologically similar prospective locations within the 3,300-acre tract. West of Casper, Wyoming in the Sweetwater Mountains, this prospect is adjacent to both the Wind River Basin and the Casper Arch in Fremont County and is in close proximity to productive gas and oil fields.
The Northwest, North, and West Diamond Springs are shallow drilling prospects, 200 feet to 1,100 feet in depth, with 72 possible drilling sites within the three locations (based on 40-acre spacing). The drilling sites consist of stratigraphic pinch-outs of sands of the Cretaceous, Frontier, Dakota, Lakota, Jurassic, Morrison, and Sundance formations.
Third-party geological assessments suggest that there may be greater potential for further exploration in the deeper formations that may be present within this prospect. The initial focus is to exploit the shallower formations in order to take advantage of reduced investment risk and quicker return on investment.
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