Forest Gate reports that it has mobilized a rig to drill for oil and gas on its Crescent Junction property in Grand County, Utah, and is expected to spud on or before January 3, 2010.
Forest Gate is drilling a 3,600-foot well, targeting the Wingate formation, which is an eolian (sand dune) sandstone of Jurassic age with a potential thickness of 800 ft. The Wingate formation target has been defined by 3D seismic.
Drilling results on this well, located in Section 3, T22S-R19E, located approximately 29.8 miles East of Green River, Utah, are expected by the end of February, 2010. The operator is Tidewater Oil & Gas Company, LLC, Denver, Colorado.
The target has three-way closure with truncation against a salt wall and is up-dip of a recently completed well with oil reported in the Wingate formation. Cost of a completed producer is US$733,288 while the dry hole cost is at a turnkey price of $400,000 and will earn Forest Gate 37.5% interest in 2,160 gross acres. The program is financed with proceeds from the company's recent financing.
"We are extremely pleased to be working with Tidewater to drill Forest Gate's first target on our recently acquired property," said Don Vandergrift, Forest Gate's President and Chief Operating Officer. "Success on this well will open a vast opportunity to explore and develop Forest Gate's substantial property in Utah."
In a previous news release, dated January 19, 2010, Forest Gate had announced that it had enhanced its originally acquired 5000 gross acres with an additional 116,000 gross acres, bringing its total land holding in the area to 121,000 gross acres and 31,335 net acres in Utah.
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