Lighthouse Petroleum, Inc. announce the acquisition of a 25% working interest in G2 Petroleum LLC’s Diamond Springs Prospect, located within the prolific Wind River Basin. The Diamond Springs Prospect comprises 3,300 gross acres of prospective oil and natural gas property in Fremont County, Wyoming. Independent geologic work has concluded that the property has the potential for 4.3 million barrels of recoverable oil, with a revenue potential of over $250 million at current pricing, with most expected to occur in shallow wells at depths of less than 1,000 feet.
Other working interest partners include G2 Petroleum, LLC, as well as Force Energy Corp, a publicly traded bulletin board organization which trades under the ticker symbol FORC.OB. Force Energy is responsible for 100% of the costs associated with the inaugural well on this acreage, thus minimizing the economic risk for Lighthouse Petroleum initially. After the inaugural well, Lighthouse Petroleum will then be responsible for 25% of all capital expenditures on the remaining 69 well locations should initial results yield a positive return on investment.
Mr. Paul Norat, CEO of Lighthouse Petroleum, Inc., states, “We are pleased with our initial acquisition. Although this acquisition is not currently revenue producing, it does represent a portion of our strategic business model which is to identify and develop new petroleum reserves. We believe this will assist our great nation of ridding ourselves of foreign oil dependency until alternative methods may be deployed sometime in the future.” Mr. Norat further adds, “Furthermore, we are excited about the opportunity to work with Force Energy Corp to assist and develop the Diamond Springs Prospect. They are currently building a presence in Wyoming and have access to qualified regional experts which will greatly assist in the final objective for this acreage, which is to establish and further develop the untapped petroleum reserves that potentially exist on our 3,300 acres.”
Diamond Springs is located within the Wind River Basin Province of central Wyoming, which is estimated by the United States Geological Survey to contain 41 million barrels of oil, 2.4 trillion cubic feet of natural gas, and 20.5 million barrels of natural gas liquids.
Other major operators who are active in the Basin include Conoco Phillips (Mkt Cap: $132B), Encana Corp (Mkt Cap: $63B), and Devon Energy (Mkt Cap: $53B). Independent operators include Howell Petroleum, Petroleum Resource Management, Richardson Operating Co, and Rockwell Petroleum.
The Diamond Springs Prospect is composed of three independent but geologically similar prospective locations within the 3,300-acre track. West of Casper, Wyoming in the Sweetwater Mountains, this prospect is adjacent to both the Wind River Basin and the Casper Arch in Fremont County and is in close proximity to productive gas and oil fields.
The Northwest, North, and West Diamond Springs are shallow drilling prospects, 200 feet to 1,100 feet in depth, with 72 possible drilling sites within the three locations (based on 40-acre spacing). The drilling sites consist of stratigraphic pinch-outs of sands of the Cretaceous, Frontier, Dakota, Lakota, Jurassic, Morrison, and Sundance formations.
Third-party geological assessments suggest that there may be greater potential for further exploration in the deeper formations that may be present within this prospect. The initial focus is to exploit the shallower formations in order to take advantage of reduced investment risk and quicker return on investment.
Lighthouse Petroleum, Inc. is an oil & gas exploration company headquartered in Salt Lake City, Utah. The company is publicly traded on the over-the-counter Pink Sheet trading system under the symbol LHPT.
Currently, Lighthouse Petroleum is focused on acquiring oil and gas assets in both the Permian Basin as well as within the Wind River Basin. Lighthouse Petroleum’s first acquisition is located within the Wind River Basin allowing Lighthouse Petroleum the opportunity to develop unproven oil and gas reserves, thus contributing to our domestic energy needs. Additionally, management is currently seeking exploitation opportunities within the Permian Basin that will complement our Diamond Springs Drilling Prospect.