Lighthouse To Drill
Their Freemont County Acreage
Lighthouse Petroleum, Inc. is a developing oil and gas company. Lighthouse's business plan centers on acquiring abandoned wells and land leases believed to still have sustainable development opportunities initially focusing on the Permian Basin and Arch-Fort Worth Basin. Management believes the use of modern technology will enable the company to reduce its risk in the initial phase of development and open up new opportunities. Management plans to create a base cash flow from reentering these wells and establishing a network to acquire additional land assets in the targeted areas.
Lighthouse says that both Lighthouse Petroleum along with its working interest partner, have filed for the inaugural drilling permit on the Diamond Springs Location submitted to Bureau of Land Management last Tuesday. The initial drilling location is located in Township 32 N., Range 90 W., Section 9 of Fremont County, Wyoming.
Based upon 3rd party Geological Assessments, this particular section of the Diamond Springs Prospect represents approximately 25+ drilling locations, out of a total of 75+ overall drilling locations on the Diamond Springs acreage, and up to 1.5MM barrels of crude, out of a total potential 4.3MM barrels of crude that exist on the Diamond Springs acreage. If the drilling of this well is successful and the determination of an existing stratigraphic trap is validated, this could represent future Gross Revenues of over $120MM (8/8ths basis) based on today’s current crude price.
Mr. Glen Kennedy stated, “Since joining Lighthouse Petroleum last month, we have made significant progress in achieving our goal of drilling on our Wyoming Oil and Gas Acreage. Now that the permitting process has been submitted, we will now focus our efforts on the drilling and completion of the DSP #1.” It is an enhanced oil recovery (EOR) or gas recovery method that is becoming more and more popular as the price per barrel of oil gets higher.
Unlike a directional well that is drilled to position a reservoir entry point, a horizontal well is commonly defined as any well in which the lower part of the well bore parallels the oil zone. The angle of inclination used to drill the well does not have to reach 90° for the well to be considered a horizontal well. Applications for horizontal wells include the exploitation of thin oil-rim reservoirs, avoidance of drawdown-related problems such as water/gas coning, and extension of wells by means of multiple drain holes.
Cost experts have agreed that horizontal wells have become a preferred method of recovering oil and gas from reservoirs in which these fluids occupy strata that are horizontal, or nearly so, because they offer greater contact area with the productive layer than vertical wells. While the cost factor for a horizontal well may be as much as two or three times that of a vertical well, the production factor can be enhanced as much as 15 or 20 times, making it very attractive.
To give an idea of the effectiveness of horizontal drilling, the U.S. Department of Energy indicates that using horizontal drilling can lead to an increase in reserves in place by 2% of the original oil in place. The production ratio for horizontal wells versus vertical wells is 3.2 to 1, while the cost ratio of horizontal versus vertical wells is only 2 to 1.
Horizontal oil drilling can be used in many situations where conventional drilling is either impossible or cost prohibitive. This is by no means an exhaustive list, but it should get you thinking about the possibilities of horizontal directional drilling.
As of April 27, 2011, Fremont County was responsible for 8.763% of Wyoming’s oil production resulting in 674,908 barrels of oil. The natural gas production resulted in 7.805 of the states total production, or 27,116,426 mcf of natural gas.
The total state production was 7,701,948 barrels of oil and 347,441,434 mcf of natural gas.
There were 1,242 producing wells and 647 Idle wells during this period.
There were 22 approved permits to drill issued since January 1, 2011. Approval were; Richardson Operating Co., Encana Oil and Gas USA Inc. and Marathon Oil Company.
There are currently over 66 active operators within Fremont County.
The top five operators in Fremont County through April 27, 2011, by oil production, were as follows:
1. Devon Energy Production Co. LP with 364,094 bbl
2. Marathon Oil Co. with 220,986 bbl
3. Wesco Operating Inc. with 72,283 bbl
4. Encana Oil & Gas USA Inc. with 33,686 bbl
5. Richardson Operation Company with 30,510 bbl
The top five operators in Fremont County through April 27, 2011, by gas production, were as follows:
1. Burlington Resources Oil & Gas Company LP with 18,712,608 mcf
2. Devon Energy Inc. with 5,075,322 mcf
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