Signet Spuds Second Well at Sawn Lake
Surge Global Energy, Inc., a major shareholder of Signet Energy, Inc., the operator of the Sawn Lake Oil Sands Development, on Tuesday said that Signet has begun drilling its second well in the development. This is the first of three additional wells that Signet will drill over the next 90 days in the Bluesky Formation of the Sawn Lake area.
The Sawn Lake Oil Sands Development has been estimated by two respected third-party petroleum engineering firms to contain a total of 820 million to 1.2 billion barrels of oil resource in place, of which Signet Energy can earn a 40-percent working interest on all contiguous sections covering 44,480 acres in the Sawn Lake area of Alberta, Canada.
Signet has commitment to drill a total of 10 wells, each well drilled earns Signet an interest in the field; one well has been drilled and completed to date and demonstrated cold flow reservoir characteristics. To date, Signet has earned a 40-percent working interest in 6 sections. Deep Well is being carried by Signet for the first 10 wells and thereafter, Deep Well is required to pay its 40-percent share, along with each of the two other 10-percent working interest partners that pay their share of completion, production test, and operating costs.
Surge Global Energy, Inc., located in San Diego, California, is a major shareholder of Signet Energy, Inc. The company invests in assets that target Canadian oil sands and conventional oil and gas properties in North and South America. Surge also holds a working interest in the Santa Rosa Dome project in the Mendoza province of Argentina. It also has rights to earn a working interest in the Keg River Formation in the Kitty area of North Central Alberta, Canada.