Credo Petroleum Announces Drilling on Its First Horizontal Bakken Well
17 September 2009 - 10:00PM
Business Wire
Credo Petroleum Corporation (NASDAQ:CRED), an oil and gas
exploration and production company with significant assets in the
Mid-Continent and Rocky Mountain Regions, today provided an update
on its horizontal Bakken drilling project.
Credo entered the horizontal Bakken oil play in 2008 as part of
its ongoing strategy to focus on developing oil production and
reserves. To date, the company has acquired 6,100 gross
(5,000 net) acres. All of the leases are located on the
western portion of the Fort Berthold Indian Reservation, generally
south and west of the highly prolific Parshall Field. Credo’s
acreage currently includes approximately 30 potential drilling
locations based on 640 acre spacing units. Other significant
leasehold owners in the area of the company’s leases include EOG,
XTO, Petro-Hunt, Questar, Marathon, Kodiak, Peak and Zenergy.
The company’s first horizontal Bakken well, Petro-Hunt
148-94-17D-08-1H (“Petro-Hunt 148”), is currently drilling to
confirm the productive potential of the middle member of the Bakken
shale on the southwest portion of the Reservation. The horizontal
well is located on a 1,280 acre spacing unit and is planned for a
long (10,000-foot) lateral.
This well is located in the same township where three Bakken
discoveries have recently been made by Peak Exploration, one just a
mile to the east. The well is also about 10 miles west of a recent
Kodiak discovery that reported initial production of 2,200 barrels
of oil per day from two laterals.
In addition to the Bakken, the company believes that the deeper
Three ForksSanish formation is highly prospective over much of its
acreage. That formation is yielding encouraging results for other
operators. The first Three ForksSanish well has recently been
completed on the western side of the Reservation about 10 miles
from the Petro-Hunt 148 well. The vertical portion of the
Petro-Hunt 148 well will penetrate and further evaluate the Three
ForksSanish formation before going horizontal in the Bakken.
Credo elected to sell-down its original 25% interest in the
projected $6.2 million Petro-Hunt 148 well and will
participate for a 10% working interest. Title work is currently
underway on two additional 1,280 acre spacing units in which Credo
owns 18.75% and 25% interests. The company expects drilling to
commence this year on that acreage.
Management Comment
James T. Huffman, Chief Executive Officer, commented, “We have
made a significant commitment to our Bakken project because it is a
major oil resource play that has already proven to contain enormous
potential. The Bakken is one of the largest oil accumulations ever
assessed by the U.S. Geological Survey, and our acreage is located
in an area that is receiving significant industry attention.
“Drilling results on the Reservation have been very encouraging
with initial production rates often exceeding 1,000 barrels of oil
per day. We expect even better results as rapidly advancing
completion technology continues to improve production rates.
“About three years ago we made a similar commitment to the
Lansing-Kansas City oil play in Central Kansas. That play has
yielded excellent results and has significantly increased Credo’s
oil production and reserves. The Bakken project is a continuation
of our strategy to focus on oil. We believe that virtually all of
our acreage on the Reservation will eventually be productive from
the Bakken formation, and we expect the Bakken and Three
ForksSanish to make a major contribution toward rapidly increasing
Credo’s oil production and reserves.
“Credo will issue a press release next week updating operational
activities for its Central Kansas and Oklahoma drilling projects
and its Calliope Gas Recovery System.”
For more information about the company, visit
http://www.credopetroleum.com.
Credo Petroleum Corporation is a publicly traded independent
energy company headquartered in Denver, Colorado. The company is
engaged in the exploration for and the acquisition, development and
marketing of natural gas and crude oil in the Mid-Continent and
Rocky Mountain regions. The company’s stock is traded on the NASDAQ
System under the symbol “CRED” and is quoted daily in the “NASDAQ
Global Market” section of The Wall Street Journal.
This press release includes certain statements that may be
deemed to be “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements included in this press release, other than statements of
historical facts, address matters that the company reasonably
expects, believes or anticipates will or may occur in the future.
Such statements are subject to various assumptions, risks and
uncertainties, many of which are beyond the control of the company.
Investors are cautioned that any such statements are not guarantees
of future performance and that actual results or developments may
differ materially from those described in the forward-looking
statements. Investors are encouraged to read the “Forward-Looking
Statements” and “Risk Factors” sections included in the company’s
Annual Report on Form 10-K for more information. Although the
company may from time to time voluntarily update its prior forward
looking statements, it disclaims any commitment to do so except as
required by securities laws.
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