Word from the well site is that permeability in the zone they perforated is crazy high. We know from analyses made public last year that the formation they are in has very high hydrocarbon content with a pure Mississippian era signature. The early presence of condensate amid the filtrate confirms that they have hit the oil leg. These indicators point to a good, maybe even spectacular, well. Another positive sign: they have, at considerable expense, installed the equipment needed to handle high condensate flows. The well is reportedly in a clean-up phase, but Halliburton is on site this weekend doing procedures. It all looks very serious.
Let's say that they have a good well, as now seems possible. It will be the only producer for 80 miles. In fact, it is the only well on the western-most Paxton Thrust of the Central Utah Hingeline. The implications are huge.
USGS estimates that the carboniferous deposits in Nevada and western UT generated up to 3 trillion bbls, much of which would have migrated eastward. In the 1970s majors led the hunt, before going elephant-hunting overseas. Using old Standard Oil data, Wolverine found vestiges along the Gunnison Thrust in 2004 and 2008. It appears, however, that Richfield has found the fabled migration path. If so, all of the traps directly to the west, including Richfield's main Gunnison Thrust acreage around Fountain Green, are likely to be saturated with light, Mississippian era crude. This would be a game changer not just for a little company with a (perhaps temporarily) minuscule market cap, but for the UT energy sector.
