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 has completed approx. 85 of 145 sq. miles of 3D seismic and has commenced a six vertical well drilling program on its Pondera-Teton Prospect in the southern Alberta Bakken Basin in NW Montana to evaluate and test the Sunburst, Madison, Lodgepole, Bakken, Three forks and Nisku Formations.
Primary holds over 310,000 gross acres (216,425 net acres) (485 gross ; 338 net sections) in Bakken prospective areas. Primary and its U.S. Major Industry Partner currently hold 67.5% / 32.5% interest over its Southern Alberta Bakken Basin Leases in NW Montana and 100% interest in its lands located 50 mi. NW of the Elm Coulee Bakken oil field in eastern Montana.
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 Southern Alberta Basin Bakken Fairway in NW Montana offer multi-zone potential for oil and gas.
- At least three major oil and gas companies have acquired large blocks of land in the Southern Alberta Bakken Basin in NW Montana 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.
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