Grid Petroleum Sees Upside Potential of 1.3 Tcf in Wyoming

Schlumberger has completed a technical report evaluating Grid Petroleum's SE Jonah Prospect in Sublette County, Wyoming.

The report in its objectives of the evaluation set out to review existing seismic data over the prospect in order to make recommendations on possible purchase; review available maps, wells and seismic data to evaluate the and feasibility of the Prospect; undertake a data audit of available public data; provide an evaluation of industry activity in and around the Prospect; review production from surrounding fields in the Lance formation to determine potential production rates; original gas-in-place (OGIP) and estimated ultimate recoveries (EUR); assess possible drilling locations based on geological, petrophysical and engineering data and to provide recommendations for additional data purchase and acquisition, including seismic.

Based on the available geological and engineering data, the report stated "good possibility of productive hydrocarbons being encountered in the prospect and the surrounding area."

The Schlumberger report continues advising a SW-NE aligned anticlinal nose which plunges to the NE, and trends almost directly through the middle of the Teakettle unit at the top of the Fort Union Coal Zone and Lance Formations. The report continues-This feature is noted to be most prominent in the Sublette Flat #1 well and Sagebrush Federal #3-8 well; both located within the north-eastern part of the unit and on the (Grid Petroleum) acreage. Additionally the report advises Gross sand in the Lance Formation, which is the primary reservoir interval, exceeds 1,000 feet in (Grid Petroleums SE Jonah) Prospect and that a similar fluvial environment of channel sandstones with interbedded floodplain shales, which occurs at Jonah Field, is expected in the prospect.

Additionally Schlumberger's report recommends that additional seismic data should be acquired over the SE Jonah Prospect allowing for more subsurface control and better positioning of drilling locations.

In completing the evaluation the report cites a base case EUR estimate of 292.4 billion standard cubic feet (Bscf) and a high case estimate of EUR 1280.8 Bscf. and has recommended the acquisition of additional seismic data over the prospect to allow for greater subsurface control and better positioning of drilling locations.

The OGIP and EUR on a "per well basis" were also calculated by varying the gross sand thickness and recovery for the prospect and included low, base and high cases (P10, P50, P90) by varying the net sand thickness and recovery factor. The report continues advising the values used for the recovery factor were conservative as gas reservoirs with no or low liquid production can commonly have recovery factors in excess of 80%.

Paul Watts, CEO of Grid Petroleum said, "We are delighted to have this report in place from Schlumberger. As one of the most respected names in the industry, this adds real credibility to what Grid aspire to explore and prove. The upside potential which is approaching 1.3 Tcf would be a major discovery to any oil company, and presents an immense opportunity for our company."