For those who can DD and read.....
Eden Energy seeks oil near Ely
Friday, Jul 15, 2005
By KENT HARPER
What geologists are calling a spectacular oil discovery in central Utah could overflow into Eastern Nevada.
The discovery, just outside of Sigurd, Utah, was made by Wolverine Gas & Oil Corp, which has purchased leasing rights for a half million acres in the Beehive State.
Wolverine geologists say the strike could yield a billion barrels of oil or more.
Two wells have been drilled and the company is trucking 1,500 barrels a day to Salt Lake City refineries, with more wells planned in the future.
But a British Columbia company, Eden Energy Corp., believes there's recoverable oil also in Eastern Nevada near Ely.
Last April, Eden Energy's CEO, Donald Sharpe, told ExecutivesCorner.com, a San Diego-based Internet newsletter, "We are currently developing a 210,000-acre lease block in Eastern Nevada that we put together over the past 12 months. We have a 100-percent working interest in the entire block, which we call the Noah Project."
In Eden's corporate overview of the Noah Project, the company calls Nevada the "Forgotten State."
"Much of Nevada's geology remained misunderstood partly because a comprehensive, regional survey had never been done," the overview stated. "A lack of field staff and funding by the USGS meant that the government organization had never conducted more than a cursory examination.
"Adding to the lack of understanding," the overview explained," most of the geologists in the state were of the hard rock-gold prospector variety instead of hydrocarbon-hunting, petroleum geologists."
Of the relatively small number of oil wells drilled in Nevada, 90 percent were shallow, such as in Railroad Valley, and could not reach the deeper, oil-rich shales under the over-thrust.
But Sharpe came across studies conducted by CedarStrat Corp.
CedarStrat founder, Dr. Alan Chamberlain had acquired over $200 million in exploration data, gathered over the past 50 years in Eastern Nevada. Sharpe said Chamberlain's studies were the first of their kind for the region and indicated there were "world-class, reservoir rocks and large over-thrust structures" that could contain large volumes of oil.
Chamberlain and Sharpe believe there is "karsted dolomite rock" under volcanic layers. Dolomite is deposited as limestone, but turns into a lattice-work of cavities (karsted) when exposed to fresh water over time. Shales formed over the limestone at the bottom of the fresh-water, inland sea.
But over the eons, the edges of Nevada's sedimentary rocks were pushed together by tectonic forces, forcing many to create over-thursts and some to actually invert, creating pockets of organic layers that developed into oil.
The earth forces created a north-south system of mountains and valleys from the Mojave to Canada. But not all of the area has oil resources. Where oil has been discovered along this system, however, in Wyoming and Canada, there are giant oil and gas fields.
Sharpe believed the Noah Project sits on top of another such field.
Eden isn't the first company to take an interest in the area.
According to the company's project overview, in 1988 Exxon drilled a single well 12 miles north of the Noah Project area. Exxon drilled through volcanic rock and found oil. But after the Exxon Valdez disaster, the overview notes, Exxon stopped all of its U.S. "greenfield" projects.
Sharpe points to the Wolverine site in Utah.
He said the type of source rock for the oil is the same as in the area of Noah and "is coming from the west, where we are."
"We targeted the Noah area to the west because we think the source rocks there are twice as rich and up to 10 times as thick as at the Wolverine discovery," he added.
Sharpe told ExecutivesCorner.com, "We've done extensive exploration work to advance the Noah Project, including gravity, magnetics, well studies and field mapping.
"We are planning a 2-D seismic program, which is designed to finalize a drilling location by early fall. In terms of the future, we would expect to drill the first well in the Noah Project in the next 12 months," he said.
Sharpe said the first well should cost the company about $4 million with another $4 million having been spent on exploration.
The CEO said the Nevada thrust belt is part of North American Cordillara -- the mountain spine that runs the length of North America. Although an area rich in oil reserves because of its fault and fold belts, it's been ignored in Nevada because of the desert overburden and volcanic formations, which may have allowed any trapped gas and oil to escape its pockets.
"It took a pretty concerted effort by CedarStrat for 25 years to unravel the thrust belt story in Nevada," Sharpe said. "Throughout the world, where oil and gas-generating source rocks are involved in the thrusting, that is where you'll find your biggest fields. The giant fields in Iran, Western Canada and even closer to home the Wyoming-Utah thrust belts are examples...
"I think roughly one-quarter of the world's oil comes from thrust belts," he said.
Sharpe added that within Noah's 210,000 acres, located in the Diamond Mountains in White Pine County, the company has identified at least six geologic "structures" with the potential to become "a giant or super giant oil field."
The oil man said the first petroleum production likely would be shipped by truck.
"But with the size of (oil field) targets, we would also start thinking about the pipeline process and application and permitting, which is going to take some time."
The Noah Project area is huge -- a rectangle 53 miles long, north to south, and seven miles wide.
Not everyone shares Sharpe's enthusiasm for the potential of the Nevada thrust belt.
Fadel Gheit, senior oil analyst at Oppenheimer & Co. in New York, told the Associated Press he has his doubts for the region, which has yet to be fully surveyed.
"It's just very highly unlikely because the U.S. onshore has been picked clean, if you will," he said.
Finding a major, untapped oil field in America after all the exploration of the past is questionable, he said.
"That's like finding a wallet in the subway after all the cleaners went through it. It's possible, but very highly unlikely," he added.
But the oil industry doesn't share Gheit's pessimism.
The BLM held its latest quarterly oil and gas lease sale in Reno last month. The BLM netted close to $3.1 million in bonus bids.
The total bids and fees received, along with the number of acres sold, were by far the highest that BLM Nevada has seen in 14 years of competitive oil and gas lease sales.
According to John Menghini, petroleum engineer for the BLM Nevada Division of Minerals Management, industry interest in this particular oil and gas sale was higher than usual because of the Wolverine discovery and speculation that similar formations and characteristics might exist below Nevada's wide-open spaces.
Strong global oil and gas prices and pending national energy legislation also contributed to the increased interest, Menghini said.
"Nevada's potential for oil and natural gas production is largely unexplored," Menghini said. "For those in the energy industry, Nevada is the next frontier in oil and gas exploration. In the future, Nevada could become a major player in the nation's efforts to address domestic energy needs."
And Eden Energy plans to play a major role -- not only with the Noah Project. During the June 14 auction, Eden leased an additional 50,000 acres in Eastern Nevada: a promising site in Railroad Valley.
For discussion purposes, consider the following excerpts from the above article:
1) “British Columbia company, Eden Energy Corp., believes there's recoverable oil also in Eastern Nevada near Ely.”
Is it possible that this is the international investors group PBLS met with in Seattle recently?
2) “CedarStrat Corp… CedarStrat founder, Dr. Alan Chamberlain had acquired over $200 million in exploration data, gathered over the past 50 years in Eastern Nevada. Sharpe said Chamberlain's studies were the first of their kind for the region and indicated there were "world-class, reservoir rocks and large over-thrust structures" that could contain large volumes of oil… concerted effort by CedarStrat for 25 years to unravel the thrust belt story in Nevada.
Go to the Cedarstrat.com website and educate yourself.
3) “Noah Project… deeper, oil-rich shales under the over-thrust… Noah area to the west because we think the source rocks there are twice as rich and up to 10 times as thick as at the Wolverine discovery…1988 Exxon drilled a single well 12 miles north of the Noah Project area. Exxon drilled through volcanic rock and found oil… We've done extensive exploration work to advance the Noah Project, including gravity, magnetics, well studies and field mapping… expect to drill the first well in the Noah Project in the next 12 months… first well should cost the company about $4 million…Noah's 210,000 acres, located in the Diamond Mountains in White Pine County, the company has identified at least six geologic "structures" with the potential to become "a giant or super giant oil field… Noah Project area is huge -- a rectangle 53 miles long, north to south, and seven miles wide… first petroleum production likely would be shipped by truck.
Answers a few questions…..$4million estimated well drilling cost….extensive analysis by smart companies prior to getting involved…production to be trucked and eventually pipelined when economically feasible.
Why don’t you all quit sniping at each other and dig into the information that is out there? I for one have begun to identify boots on the ground in the area of interest to get an information pipeline established talking to the blue collar folks, roughnecks, geologists, petroleum engineers, drillers, etc. Suggest you use your energies for more productive activities than beating up on each other and contemplating your navels.
JMHO
USC COWBOY
Aka: provocateur007
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