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 extension of the Alberta Basin Bakken Fairway in Western Montana. As well in Daniels County in the Williston Basin of north-eastern Montana Primary has a 100% interest in the Saturn prospect, which is approximately 50 miles NW of the Elm Coulee Bakken Field.
Currently Primary holds approximately 110,000 net acres [170 sections] in the Alberta Basin Bakken Fairway in western Montana and 20,000 net acres [31 sections] in the Saturn prospect in eastern Montana. The Company also holds other oil and gas prospects in Montana that total approximately 90,000 net acres [140 sections].
The Company will continue to generate oil & gas prospects of merit in western 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 potential and adjacent to the Cabaret Coulee field which has produced approx. 450,000 bbls. Wells in this field had IP rates between 500 - 700 bbls/day from the McGowan and Mission Canyon Formations.
- Four of the original wells in the area were drilled to the Nisku Formation. The same Bakken middle siltstone 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.
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