Symbol: PETEF
03/04/2011 03:59PM (ET)
Last Trade: 0.85
Day High: 0.85
Day Low: 0.80
Net Change: +0.04
Volume: 773323
Primary Petroleum has focused a majority of its resources in the acquisition of prospective oil and gas acreage in Montana. The Company has a significant land position in the Alberta Basin Bakken Fairway in Western Montana and in the Northwest area of the Williston Basin in Eastern Montana. Currently Primary holds over 220,000 net acres (344 sections) in Bakken prospective areas. Primary currently holds 100% interest over all of its land holdings in Montana.
Primary currently holds over 200,000 net acres (312 sections) in the Alberta Basin Bakken Fairway in western Montana and 20,000 net acres [31 sections] in the Williston Basin in eastern Montana. The Company also holds other oil and gas prospects in Montana that total approximately 64,000 net acres [100 sections].
The Company will continue to generate oil & gas prospects of merit in the western Sedimentary Basin and acquire the acreage necessary to exploit it.
Primary's current land holdings and future exploration and development possibilities in Montana will provide excellent upside for the Company and its shareholders because:
Montana is located in the Western Sedimentary Basin, which is world renowned for oil and gas discoveries.
Its access to large blocks of contiguous and prospective land at reasonable lease rates.
Primary land holdings in the Alberta Basin Bakken Fairway in western Montana offer multi-zone potential for oil and gas and are close to existing infrastructure.
At least three major oil and gas companies have acquired large blocks of land in the area and are currently drilling to develop this prospect area.
Primary's land holding in eastern Montana have multi-zone oil potential and are adjacent to the Cabaret Coulee field which has produced approx. 450,000 barrels of oil. Wells in this field had IP rates between 500 - 700 barrels/day from the McGowan and Mission Canyon Oil Formations.
Four of the original wells in the area were drilled to the Nisku Formation. The same Bakken middle siltstone formation which produces in Elm Coulee and Southeast Saskatchewan is present but was never tested.
Expenses associated with oil and gas industry are generally lower in Montana as compared to Alberta.
