Nitro Petroleum Applies for Drilling Permit on First Montana Project

Nitro Petroleum has submitted its proposed drilling location to the Bureau of Indian Affairs for their approval. The process usually takes 30 to 45 days. The proposed location is situated near the town of Lodge Grass on the Crow Indian Reservation in Section 27, T6S-R36E, Big Horn County, Montana. This well will be on a 160 acre spacing which would allow Nitro to re-space and drill 3 additional wells on 40 acre spacings if the first well is productive.

The targeted depth for this well is 6450' which is the top of the Tensleep Formation. Although the Tensleep Formation is largely untapped in the Powder River Basin, this particular location is a direct SE offset to a well drilled near Lodge Grass 10 years ago. That well was a discovery well into the Tensleep Sandstone Formation and has produced in excess of 350,000+ barrels of oil in its history and currently still produces approximately 50 barrels of oil/day.

Larry Wise, President of Nitro stated, "I believe this discovery well is just a preliminary indicator of what the basin could produce, due to relatively little exploration of the basin and that there are multiple zones of interest above the Tensleep Formation which are capable of producing oil and gas."