Entek Begins Drilling at Butter Lake Prospect

Entek advised that the Butter Lake 32-10 well (32-10 well) spudded on the July 30, 2010. The 32-10 well is the first new well targeting the Niobrara and Frontier Formations for the 2010 drilling season. Further details are set out below.

In summary:

  • The rig is on site and spudded the 32-10 well on July 30, 2010. The primary objectives of the 32-10 well are the oil prone Niobrara Formation and the underlying Frontier Formation. The well is located between the Focus Ranch Federal 12-1(“12-1”) well and the Battle Mountain Federal 14-15A well, both of which have successfully tested oil and gas for Entek.
  • Secondary objectives include the Deep Creek Sandstone, the Mancos Formation, including the Shannon/Morapos Sandstones and the Carlisle Formation. All secondary objectives have produced oil and gas from wells adjacent to Entek's acreage.
  • Previous independent reserves and resource estimations of the primary objective Niobrara Formation intersected by the 12-1 well (which is a close analogue to the 32-10 well) are in the range of 2.6 to 3.2 MMBO of condensate and oil and 7.6 to 20 BCF of gas. The secondary objectives, if successful, will be incremental to this. To better understand the potential reserves per well and resource across the Company's acreage position Entek has commissioned independent certification of reserves and prospective resources across its acreage position for both the Slater Dome Field and the oil prone Niobrara Continuous Resource Play. Since the reports referred to above were submitted Entek has drilled two new wells with the 32-10 well being the third to test the Niobrara Continuous Resource Play. Entek has also tested a new Niobrara zone in the 12-1 well and performed significant recompletion and workover operations on the existing gas production wells in the Slater Dome Field.
  • Drilling and logging operations at the 32-10 well location are expected to take approximately 22 days, with completion and testing incremental to this in the success case.


The well is targeting the Niobrara Formation and Frontier Formation within the Focus Ranch Unit. The well location is shown in the figure adjacent. The proposed Total Depth (TD) is 8,700' within the Frontier Formation, which has tested gas and liquid hydrocarbons from the Focus Ranch 12-1 well.

The well targets a closed structure bounded by a fault to the north with structural reversal at shallow levels including the Deep Creek
Sand. The Mancos Shale also exhibits structural closure that would create potential hydrocarbon traps in the Shannon Sand and Marapos Sand (that are units within the Mancos Shale). Deeper reservoirs that will also be tested within structural closure include the Frontier Formation which is one of the two primary targets.

Within the Niobrara Formation primary target there are three brittle benches (units) that act as continuous hydrocarbon reservoirs when fractured. Fracturing of these benches is expected to occur associated with faults, igneous sill intrusions and the structural deformation at this location.

The average production rates for Niobrara wells throughout the Sand Wash Basin where Entek's acreage is located are 101 BOPD and 165 MCFD. Estimated Ultimate Recovery (EUR) for those averages are 260,000 BO and 1.1 BCF per well. Initial production rates have been as high as 500 BOPD from vertical wells adjacent to Entek's acreage. The Focus Ranch 12-1 southeast of this location had combined initial rates of 2.75 MMCFD and 240 BOPD. Independent reserves estimate associated with the 12-1 well range from 2.6 MMBO to 3.2 MMBO of condensate and oil and 7.6 BCF to 20 BCF of gas.

If the Butter Lake 32-10 well is successful then a similar reserves addition may occur. In the event of a success the well will be tied into the existing production facilities at Slater Dome via a gathering line.