This large oil field consists of approximately 10,000 acres covering 2 counties with 38 leases. There are a total of 90 wells with 15 producing wells and 75 shut in wells ( 22 wells are planned for reworking). From 8/3 1/2005 to 8/3 1/2006, the total oil production was 20,150 harrels of oil @$60/barrel = $1,209,OOO (the water produced was 113,238 barrels) with an average of 14 wells operating on only one lease. This oil field is a 80% NRI with 100°/ working interest currently held by production. No improvements or reworking have been undertaken by the current owner or their predecessors.

This oil field was producing over 7,000 BOPM in 1986 before most of the production was shut in due to litigation and low oil prices. In 1996, the Black Feet Tribal Council commissioned the Bureau of Land Management ( BLM) to conduct a petroleum engineering study of the oil field to determine its future economic future. The BLM report, utilizing standard petroleum engineering practices, established that the oil field has in place in excess of 16 million barrels of oil recoverable by conventional methods.

The current owners commissioned a horizontal drilling company to evaluate increased drilling production. This company is recognized worldwide as a leader in enhanced secondary recovery by horizontal drilling with accuracy under one meter tolerance. This company estimated that an additional 37-53 million barrels of oil over conventional recovery can be recovered utilizing their equipment and techniques. This oil field was originally drilled in 1959, resulting in the discovery of oil in the Cut Bank Formation at a depth of approximately 3,200 feet. The Cut Bank Forrnation is one of the largest stratigraphic accumulations of oil and gas in the Rocky Mountain area. Another important aspect of this oil field involves potential development of the Madison Sand in this area. The Madison Sandis the most prolific producing zone in the State of Montana and lies approximately 400 feet below the Cut Bank Sand producing zone.

photo for illustration only

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Northern Montana Oil and Gas Project #L775

fax (208) 265 5377