Vancouver, British Columbia-based Black Gold Exploration Corp. mentioned drilling actions have began on the Fritz 2-30 oil and fuel nicely in Clay County, Indiana.
Earlier this month, BGX acquired a ten p.c working curiosity within the nicely and an choice to take part in any offset developmental wells in a 210-acre space of mutual curiosity from the operator, Adler Vitality LLC.
Black Gold mentioned in a brand new launch that the prospect “offsets the Fritz 1 nicely”. The Fritz nicely was drilled round 17 years in the past and found each oil and fuel pay horizons, however by no means produced as a consequence of quite a lot of elements, together with a drop in oil costs on the time, the corporate said.
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The Fritz 2-30 nicely is in a identified productive oil zone referred to as the Terra Haute Reef Financial institution, in southwestern Indiana, in response to the corporate.
“We imagine that the drilling on this area is the Firm’s most important short-term milestone so far and we’re delighted to have the chance to take part within the Effectively, which not solely provides us the potential for early money circulate however can be aligned with our longer-term plan to increase our footprint within the Illinois Basin,” Black Gold CEO Francisco Gulisano mentioned.
The Illinois Basin has a historical past of manufacturing 10 to 12 million barrels of oil yearly, the corporate mentioned.
Adler Vitality accomplished a 3D seismic analysis of 8 sq. miles of the realm, together with the Fritz 2-30, exhibiting each shallow and deeper stacked pay horizons. The Effectively plans to check a minimal of ten potential oil pay zones, in response to the discharge.
“Primarily based on the 3D seismic and different information we now have compiled, our skilled technical crew couldn’t be extra excited concerning the Fritz 2-30 nicely and we’re very pleased to be working with BGX in discovering what we imagine is super untapped worth,” Adler Vitality President John Miller mentioned.
“Given the historical past of the Fritz wells, we want to benefit from missed alternatives to hopefully not solely bounce begin our money flows but in addition unlock worth in one of many oldest and most efficient oil basins in North American historical past,” Gulisano mentioned.
In January, Black Gold entered into a purchase order and sale settlement with LGX Vitality Holdings, mum or dad firm of Adler Vitality, to take part within the growth of the Fritz 2-30 nicely. Black Gold mentioned in an earlier assertion it expects to commit an preliminary funding of $105,000 for the nicely and estimates incurring further prices of roughly $50,000 in the direction of commissioning the nicely.
Black Gold Exploration Corp holds a 95 p.c curiosity within the El Carmen hydrocarbon mission within the Chubut province of Argentina, about 7 kilometers from the Atlantic coast, in response to the corporate’s web site.
The San Jorge Basin ranks second of the 5 producing basins in Argentina and has confirmed oil reserves of about 5.65 billion cubic ft (160 million cubic meters), the corporate mentioned.
Black Gold notes that solely 35 p.c of the basin has been estimated to be totally explored, and that its present oil reserves can doubtlessly be practically doubled. The speedy space of El Carmen is a prolific oil and fuel producer with extremely developed infrastructure, the corporate mentioned.
The corporate mentioned it seeks to choice El Carmen to a longtime oil exploration firm, ideally one working in Argentina.
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