Welcome to the Aspen Group Resources Corp. forum.
Aspen Group Resources Corporation is an independent oil and natural gas
producer engaged in the acquisition, exploration, production and development
of oil and natural gas properties in North America. Aspen's shares trade on
The Toronto Stock Exchange under the symbol "ASR". Current production is
approximately 350 boe per day.
Canada
In Canada, Aspen operates through its wholly owned subsidiary Aspen
Endeavour and has properties throughout Alberta and southern Saskatchewan,
both in an operator and non-operator position. The main core areas are
Sturgeon Lake and Namaka, Alberta.
Saskatchewan
Aspen and its Joint Venture Partner Westchester Resources Inc. (TSXV:WSR)
recently acquired for drilling a total of 82 contiguous sections (52,533
acres) of Crown leases in Southern Saskatchewan at a gross cost of
approximately Cdn.$1.5 million. The Crown leases were acquired through three
separate land sales.
The Joint Venture Properties (the "Properties") are located east of an
extensive area that contains major resources of natural gas of biogenic
origin trapped in tight upper cretaceous shelf sediments. These types of
shallow gas reservoirs have been extensively developed in Southeastern
Alberta, Southwestern Saskatchewan, and Montana. The biogenic gas is
primarily methane, contains no liquid hydrocarbons, and is basically of
pipeline quality. Aspen and Westchester each own a 50 percent working
interest through the Joint Venture. Aspen will act as the operator on the
Properties.
The Properties are in the form of seven exploration licences, which are for
a term of two years each, requiring at least one well drilled per licence
during the primary term. To the extent the land comprising the licence is
sufficiently drilled, the underlying land will automatically be converted to
a lease for the life of the production. The Properties are not currently
revenue-producing assets.
It is anticipated by the Joint Venture that an initial five well exploratory
drilling program will be required for the initial evaluation of the
potential of the Properties. Drilling depths are relatively shallow (less
than 1,000 metres) and completion procedures include sand fracture
stimulations. Estimated completion and testing cost of the initial well is
approximately Cdn.$450,000.
A report dated June 23, 2004 entitled "Minton Natural Gas Exploration
Prospect, Southern Saskatchewan at July 1, 2004" has been prepared by Ron
Pacholko, P. Eng. of Trimble Engineering Associates Ltd. in respect of the
properties acquired by the Joint Venture and is available on the Company’s
website.
Aspen Endeavour also owns an interest in the Butte, Saskatchewan area, which
is located approximately 55 km west of Swift Current. This area consists of
11 wells that are tied in and under a water flood program to increase
reservoir performance with a working interest range from 25% to 35%.
Sturgeon Lake
Sturgeon Lake is situated approximately 80km east of Grande Prairie in north
central Alberta. This is an operated property in which Aspen Endeavour holds
an average working interest of 32.58%. The production and reserves in this
area are predominately natural gas.
Other Areas in Canada
As of April 1, 2003 Aspen Endeavour took over operatorship in the Namaka
area, located in southeastern Alberta approximately 35km east of Calgary.
Aspen Endeavour holds between 50% and 56% working interest in the lands with
24 producing gas wells in the area. Aspen Endeavour is currently working
with Siksika Indian Nation to increase their land holdings in the area.
Aspen Endeavour holds interests ranging from 19% to 100% in various other
properties in Alberta and is actively pursuing potential farmin partners in
order to reduce the risk and further develop the areas.
United States
Aspen recently announced that, through their joint venture arrangement with
Westchester Resources Inc. (TSXV:WSR), the companies have entered into a
multi-well farm-in agreement with Oil for America, Inc. ("OFA") in North
Dakota. The initial agreement is for a four well package with Aspen acting
as operator. The Joint Venture has the right to choose drilling locations
and has the right to terminate the farm-in after two wells have been drilled
and tested. If the drilling is successful and the wells are developed for
production, OFA will receive a 25 percent carried interest on the first four
wells, on a well-by-well basis, after the Joint Venture has recovered all
its exploration and development costs. For any additional wells drilled and
brought into production by the Joint Venture, the carried interest to OFA is
reduced to 20 percent.
OFA, in association with the Joint Venture have leased lands for several
locations in North Dakota. The target in North Dakota is the Lodgepole
formation in Stark County. The target Lodgepole completion has an estimated
ultimate recovery (EURL) of approximately 1,000,000 barrels and 500MMcf. The
larger wells have EURs of 4,000,000 barrels and 1 BCF. The average depth is
9,600' and estimated costs to casing point are $900,000. Completions are
estimated at an additional $300,000. Initiation of the drilling program is
subject to rig availability.