Ameriwest Energy Corp. announce plans to spud the Ameriwest Fee #1 well on or near to November 5th, 2008, subject to certain conditions.
The Company has a service agreement in place with a local drilling company and based on a preliminary rig availability assessment Ameriwest plans to approve an Authority for Expenditure (“AFE”) agreement shortly. Ameriwest will be the operator of the project and anticipates a 10 day to 2 week period to drill to the target depth of approximately 7000 feet. If a discovery is made, the Company will make a determination to elect for completion as quickly as possible thereafter.
The proposed well is located in proximity to 2 wells located in the Geary Dome field with cumulative production to-date of 323,617 BO and 29,515 MCF gas. It is also located nearby to the Weststar Keenan Fee 14-34 well with cumulative production of 156,860 BO and also within 1/2 mile of the Weststar Keenan Fee 16-27 well with cumulative production figures of 166,757 BO to-date. The location is on fee (private lands) within the Area of Mutual Interest (“AMI”) and as such, simplifies the permitting process.
As previously announced, an agreement was reached in August, 2008 with Tyler Rockies Exploration, Ltd. (“TREX”) whereby Ameriwest can earn a 50% ownership of the approximately 3,040 gross acres within the Geary Prospect AMI located in Natrona and Converse Counties, Wyoming. Under the terms of the agreement, Ameriwest will operate and receive a 75% Net Revenue Interest (“NRI”) until payout based on a 3 well program.
The Geary Prospect is located in the southwestern portion of the Powder River Basin. The main objective is structurally well documented and on trend with existing production within the Cretaceous Dakota sandstone with the possibility of production from other Cretaceous sands including the Upper and Lower Muddy, and Wall Creek (Frontier) sands. Initial estimates based on a full field program with 40 acre spacing across an estimated 18 wells indicate possible reserves of approximately 3 MMBO.
Company President Walter Merschat comments, “We are extremely fortunate to have an agreement allowing us to drill in such close proximity to known production. I have personally been studying this region for the past 20 years with great interest and look forward to finally making our mark on this prospect. It’s a known fact that millions of barrels of Dakota oil have been produced from many nearby fields and our analysis give us a high level of confidence as we move ahead with this program.”
Ameriwest Energy Corp. is a growing, expertly managed energy company focused on producing underdeveloped oil resources in the prolific Rocky Mountain region of the United States. The company is striking a strategic balance between low-risk tertiary recovery projects and extensively mapped exploration plays with significant upside potential. Visit our website at www.ameriwestenergy.com.