Voyager Finds Success With Niobrara Drilling

Voyager Oil & Gas today provided an operations update regarding its D-J Basin Niobrara activity.


Voyager currently controls a 50% interest in 44,000 net acres in the D-J Basin Niobrara play in a joint venture with Slawson Exploration. Voyager recently participated with Slawson Exploration in three previously announced Niobrara test wells in Weld County, Colorado. Two of the wells, Moonshine #1-36H and Outlaw #16-11-66H experienced significant hydrocarbon shows during drilling and have delineated an additional 22 high-grade locations to be drilled in 2011.


Moonshine #1-36H


Voyager is pleased to announce that the Moonshine #1-36H well located in Weld County Colorado, has achieved a significant increase in oil cut, as expected, and produced at a peak 24 hour rate of 650 barrels of oil. The Moonshine well is currently flowing up casing at approximately 480 barrels of oil per day with a 95% oil cut without the aid of artificial lift.


Outlaw #16-11-66H


The third well in the Slawson drilling program, the Outlaw #16-11-66H, is scheduled to be fracture stimulated the week of November 22. Based on the hydrocarbon shows during drilling, we expect similar results as the Moonshine #1-36H well after flowback and cleanup.


Additional Drilling Locations


Slawson Exploration has completed the construction of drilling pads for 22 additional Niobrara drilling locations in Weld County, Colorado. Surface casing has been set on all 22 locations which increased the term on each lease by one year. All 22 of these wells are high-grade locations and have been delineated by the Moonshine and Outlaw wells. Based on the costs of the first three wells, Slawson expects drilling and completion costs for the next 22 wells to be approximately $3.2 million per location, $1 million less than original AFE estimates.


J.R. Reger, CEO of Voyager Oil & Gas, commented, "The favorable results from the Moonshine well solidifies our expectations of the D-J Basin Niobrara as an impressive resource play and Slawson Exploration as a premier horizontal oil resource innovator. We have high-graded 22 drilling locations for 2011 and will continue to acquire additional acreage and drilling opportunities in the core of the D-J Basin Niobrara play. Just as in the early stages of any resource play, we are seeing a steep learning curve, rapidly increasing efficiencies and evolving completion techniques. These latest results confirm our belief that the Niobrara Shale is a world class resource play. We are happy to have been involved early with an acreage cost of less than $500/acre."