Painted Pony Acquires Land in Bakken Light Oil Play
Painted Pony Petroleum has expanded its exposure to the Bakken light oil play by executing a new farm-in agreement allowing access to 20.75 gross (17.0 net) sections (10,907 net acres) in the North Midale, Saskatchewan area.
Under the terms of the agreement, Painted Pony will pay 100%, to earn 100%, in the lands subject to a gross overriding royalty. The Company has committed to drill two wells on the farmin lands. The Company also acquired an additional 10.25 gross (9.88 net) sections (6,323 net acres) in the Kisbey and other Bakken light oil exploration areas.
Painted Pony estimates a drilling inventory of over 200 potential drilling locations for Bakken oil within the approximately 76,000 net acres it owns or has access to within South East Saskatchewan.
Painted Pony commenced an active operated exploration and development program in May 2007, targeting light, sweet oil in the Bakken formation in SE Saskatchewan. To date, Painted Pony has drilled a total of 14 (5.0 net) successful Bakken horizontal wells.
Currently 8 (2.7 net) Bakken formation wells are producing and an additional 4 (1.3 net) wells are expected to be on production before the end of the first quarter of 2008. Production field estimates for the last week of February 2007 averaged 237 bbls/d net to Painted Pony, from 2.7 net Bakken formation wells.
The Company is currently drilling an additional 2 (0.66 net) Bakken horizontal wells.