Force Energy Enters LOI to Develop Wyoming Prospect
Force Energy Corp. enters into an LOI to acquire 75% NRI (Net Revenue Interest) in G2 Petroleum's inaugural well to be spudded sometime early summer 2008. G2 Petroleum, of Midland, Texas, has 3300 acres of prospective oil and natural gas property in Freemont County, Wyoming. Geological reports provided to Force Energy provide an estimated recoverable reserve of over 4 million barrels of oil for the Diamond Springs Prospect. Force Energy has negotiated the rights to purchase an additional 25% working interest in the field upon receiving the results of the completion of the first well.
The Diamond Springs prospect is composed of three independent but geologically similar prospective locations located within the 3300-acre track. West of Casper, Wyoming, in the Sweetwater Mountains, this prospect is adjacent to both the Wind River Basin and the Casper Arch in Freemont 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 1100 feet in depth, with a possible 72 drilling sights between the three locations based on 40 acre spacing, with stratigraphic pinch-outs of sands of the Cretaceous Frontier, Dakota, and Lakota formations; and, Jurassic Morrison and Sundance formations. G2 Petroleum's Managing Director, Everett W. Gray II feels there is greater potential for further exploration in the deeper formations that may be present within this prospect, but states he would like to exploit the shallower formations initially to take advantage of the record high energy pricing.
This shallow drilling prospect is estimated to be completed within a range of depth 250 feet to 900 feet and yield a 75-feet pay zone in the Frontier Sands (a very prolific oil producing sand). Such a shallow well in this area is initially estimated to cost less than $350,000.00 for turnkey drilling. If successful, the Northwest segment of the Diamond Springs prospect could yield an estimated return of approximately $190 million in gross revenue.
These figures are based on the 2 million barrels of recoverable oil present for this particular segment of the Diamond Springs Prospect in conjunction with current oil and gas pricing. Charles Laser, Oil & Gas Consultant further noted from C. P. Abrassart's independent Geologic report that not including the natural gas potential, the oil potential reserves exceed 4.3 million barrels of oil for the Diamond Springs prospect. That is why this is a very attractive oil and gas prospect where millions of barrels of oil have been produced from less than 1000 feet.
"C. P. Abrassart, a 3rd party geologist reporting on this prospect, has compared the stratigraphic trap within this location to that of the nearby Cottonwood Creek Field (Big River Basin) which has an estimated reserve of over 60 million barrels of oil," stated Force CEO, Rahim Rayani, adding, "We feel fortunate to have brought this prospect into our now growing list of prospects as many stratigraphic traps with significant reserves have been successfully drilled in the Rocky Mountain area."