Brinx, Partners Complete Development Oil Well in Oklahoma

- Brinx, Partners Complete Development Oil Well in Oklahoma

Wednesday, September 07, 2011
Brinx Resources Ltd.

Brinx Resources and its partners have completed a new development oil well offsetting the highly successful 2008-3-5 well in southern Oklahoma. Completion of the new 2008-3-5A oil well took place on September 1, 2011.

The 2008-3-5A well immediately started flowing after it was perforated and began producing at a rate of 298 barrels of oil per day and an unmeasured quantity of natural gas. Since completion, the well has been producing at rates between 240 and 300 barrels of oil per day along with some natural gas. Electric log analysis indicates that several additional pay zones still exist above the completed section that will be tested at a later date.

The original 2008-3-5 well began production in May of 2009. As of June 1, 2011, that well had produced over 155,000 barrels of oil and 16.5 million cubic feet of natural gas from a single pay zone. The 2008-3-5 well continues to produce at a stabilized rate of over 100 barrels of oil per day. Engineers have estimated that the upper pay zones could contain over 180,000 additional barrels of oil to be recovered from the 2008-3-5A development well.

Brinx anticipates that it will take part in several additional development well drilling opportunities in Oklahoma in the near future. Also in Oklahoma, the Company expects to participate in a minimum of ten new exploration and development drill programs based on its recently completed 130 square mile 3-D seismic program.

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American Petro-Hunter Starts Drill Site Ops at N. Oklahoma Proj.

- American Petro-Hunter Starts Drill Site Ops at N. Oklahoma Proj.

Wednesday, August 17, 2011
American Petro-Hunter Inc.

American Petro-Hunter announced that drill site operations have commenced in preparation for the next horizontal oil well at the Company's North Oklahoma Mississippi Project development.

Site arrangements are underway including permitting and requisite documentation in advance of the spud of the newly designated NOW-2H well. The directional drilling contractor has been secured and the Company expects a spud date shortly.

The well is a direct offset to the NOM-1H well, which began production in July and will involve a similar lateral drilling operation into the recently discovered Mississippi reservoir. The Company has purchased full working interest participation in up to 11 additional horizontal wells within the play with the NOW-2H becoming the 2nd well implemented under the planned development program.

The leases in the horizontal play are being developed on 80 acre parcels, however the well spacing will be evaluated after each well is put into production for a period of 30-45 days prior to engineering any additional infill wells. This prudently engineered plan will ensure the maintenance of reservoir integrity over the life of the proposed 24 month drilling schedule. The program is envisioned to involve the drilling of approximately one horizontal Mississippi formation well every 30 to 60 days.

Given the dramatically increased levels of activity in the area, rig availability has become a key scheduling issue. As a result, the Company and partners have accelerated the spud date of the NOW-2H and have further determined that the previously announced vertical NOS-2-22 required a shift to October based on current rig logistics which ultimately provides greater overall benefits allowing for improved operational efficiency across both wells.

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American Petro-Hunter Adds Acreage in South Oklahoma

- American Petro-Hunter Adds Acreage in South Oklahoma

Wednesday, July 20, 2011
American Petro-Hunter Inc.

American Petro-Hunter has executed a Purchase and Sale Agreement which entitles American Petro-Hunter to acquire a 40% Working Interest in a minimum of 3,000 acres of lands in South-Central Oklahoma. The Company has designated the new acreage as the "South Oklahoma Project."

The acreage covers highly prospective Mississippi Limestone targets which, through detailed sub-surface geological mapping and extensive engineering, show Mississippi targets similar and analogous to the recently discovered oil and gas reservoir now being exploited at the North Oklahoma Project. Based on the commercial success of the NOM-1H horizontal well, and the Company's recently announced development plan for the Northern project area which includes an additional 11 horizontal wells, the new South Oklahoma Project offers considerable opportunities to increase the Company's presence in this increasingly important and highly productive region. Additional lands may be acquired and added to the 3,000 acres as leasing is ongoing.

Currently, the Company and engineers have identified 5 key areas under the 3,000 acres which, if developed on 160 acre spacing, could allow future development of 18 additional locations for horizontal wells. Over the next several months, targets will be refined and prioritized with plans to spud the first well in late 4Q or early 2012. The Northern and Southern project development strategy aims for synchronized operations with new drilling commencing every other month, thus ensuring a continuous area wide drilling program throughout the next 24 to 36 months.

Company President Robert McIntosh stated, "By adding these new South Oklahoma projects to our asset base, the Company forecasts the regional drilling of up to 29 horizontal wells in the future which, based on the results we have seen to date, will give American Petro-Hunter a key presence in the emerging Mississippi play and demonstrates that growth by the drill bit is a formula for success in Oklahoma."

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Nostra Terra Acquires Stake in Oklahoma

- Nostra Terra Acquires Stake in Oklahoma

Monday, June 27, 2011
Nostra Terra O&G Co. plc

Nostra Terra, as part of their continuing plan to take larger working interests (WI) in prolific US oil fields, has entered into an agreement with Pathfinder Development Capital LLC ("Pathfinder") to acquire a 30% WI in the Bale Creek prospect, located in northern Oklahoma.

Highlights of the Bale Creek prospect include:

• Shallow oil, with associated liquids-rich natural gas;
• Extensive regional structural mapping;
• Multi-pay potential from as many as 8 reservoirs, from the Ordovician up through Permian-aged rocks; and.
• 2-D and 3D Seismic to pinpoint locations and steer the horizontal well paths;

The Area of Mutual Interest (AMI) covers a contiguous area of over 3,500 acres. It is located in a very prolific oil system, proven to produce from multiple, stacked-pay reservoirs.

The project development plan consists of two phases. The first step in Phase I calls for the acquisition and interpretation of proprietary 2D and 3D seismic. Based on the tightly-controlled interpretation, a pilot hole will be drilled and logged to determine the most promising of all the potential productive zones. The next step will be to drill 3 horizontal wells into that zone, along with all production and transmission facilities to support the project. Leasing for drilling and seismic permitting in Phase I are already underway. The total estimated cost of pre-drilling activities is US $672,700, of which Nostra Terra's estimated portion is US $201,810.

The drilling budget is being finalized with drilling of the first well being planned for beginning of 4Q 2011.

Phase II will include up to four additional horizontal wells plus the additional production facilities. This phase will entail further leasing and seismic permitting within the existing AMI, prior to drilling. The final determination to move into Phase II will be made in H1 2012.

Based in Norman, Oklahoma, Pathfinder Exploration Company, LLC is a multi-disciplined geotechnical company specializing in finding new oil from old fields within the US. Combining the most advanced technology with cost-effectiveness, Pathfinder is able to identify, delineate and grade additional prospects where there are known oil and gas reserves and frequently multiple pay zones, thereby reducing risk and increasing upside potential. Pathfinder acted as operator on behalf of Shell in the Fayetteville Shale play in Arkansas, which has become an important source of natural gas through the use of horizontal drilling.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented, "Nostra Terra is delighted to have entered into this agreement with Pathfinder, which marks a strong step into Oklahoma. This agreement is in line with our stated strategy to step up the pace of our growth by acquiring a diverse pipeline of assets in established oil and gas plays - including larger interests, where we can generate added value and strong, sustainable cash flow through disciplined cost control and the use of advanced technology. Pathfinder has aligned interests and we look forward to furthering opportunities with them."

Pathfinder Development, Alden McCall, Chief Operating Officer added, "It is a genuine pleasure to be engaged with Pathfinder on this project from the purely technical point of view as well. It is a key to our growth plan to utilize leading edge technology (3D seismic, sophisticated log suites, 3D-steered horizontal well bores and modern multi-stage completions) to produce oil from compartmentalized reservoirs that have been grossly under-produced. Pathfinder Exploration has created an impressive screening and evaluation process to locate numerous prospective reservoirs in which to apply these technologies."

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Bakken, Oklahoma Plays Boost PADD 2 Production

- Bakken, Oklahoma Plays Boost PADD 2 Production

Thursday, June 23, 2011
Rigzone Staff
by Karen Boman

BENTEK Energy reports that crude oil production in the U.S. PADD 2 (Midcon) region is on pace to increase 60 percent over the next five years, with continued Bakken drilling activity and emerging oil plays in Oklahoma expected to push oil production in PADD 2 to 1.4 million b/d by 2016.

The Montana and North Dakota Bakken will contribute 418,000 b/d over the five-year period, while the continued development of conventional resources in PADD 2, especially in Oklahoma, contributing 90,000 b/d to the total growth. "This rapid increase in oil production is expected to put additional pressure on the already constrained Cushing market," BENTEK noted.

PADD 2 is home to some of the hottest unconventional oil and rich-gas plays in the U.S. Besides the Bakken, PADD 2 is home to several Oklahoma plays, including the Granite Wash, Cleveland Sandstone, Tonkawa, Cana Woodford, Arkoma Woodford and Mississippi Lime plays.

"Historically, thousands of wells were drilled in the region, often bypassing the oil trapped in these tight, unconventional reservoirs," BENTEK said in its Crude Oil Production Monitor Report for June 2011. "The transfer of shale gas technology has opened the door of opportunity and producers are now employing horizontal drilling and multi-stage fracturing techniques in order to release the once reluctant oil."

The unconventional oil play focus in PADD 2 has pushed the active oil-rig count to a recent high of 528, passing the peak reached in the summer of 2008, mostly due to horizontal rigs moving into PADD 2. The region currently has 313 horizontal rigs drilling, compared to 199 at the peak in summer 2008.

The rapid commercialization of liquids-rich U.S. shale plays has buoyed expectations for domestic U.S. oil production, with a large part of that volume making it way to the oil pipeline hub at Cushing, Oklahoma, Barclays Capital noted in a June 21 report. While production growth from Midcontinent reservoirs is not significant yet, it has been dramatic for the localized market around PADD 2, depressing WTI prices relative to other light, sweet crude oil benchmarks.

"WTI prices recently have widened to discounts of more than $20/bbl versus Brent, unheard of until recent months," Barclays said. Barclays said it sees U.S. Midcontinent crude oil production as the biggest factors influencing WTI differentials over the next few years.

Oil-directed drilling has spread across the Midcontinent, with more drilling in the Permian and Williston basins and expansion in the Anadarko and Eagle Ford basins. The shift to oil drilling has been "steady and relentless", not surprising given current pricing differentials between oil and gas. Barclays said two main constraints, the availability of high horsepower rigs that are capable of drilling horizontally, and the scarcity of oil acreage versus gas acreage, could moderate the pace of growth in the oil rig count.

The key unconventional plays to watch in the early stage of development are the Bakken Shale and the Eagle Ford shale, Barclays said. "We foresee U.S. liquids production from these locations expanding at a rate of 200-250 thousand b/d in the coming years. We would expect to see the bulk of the growth to come from Bakken and Eagle Ford shale areas (around 100,000 b/d and 70,000 b/d) respectively."

While the presence of oil in the Bakken formation in the Williston Basin has been known for years, production did not take off until 2006 due to higher oil prices and advances in drilling techniques. North Dakota's production growth resulted in a record high of 5,200 active wells in March, and the state's oil output had grown to 350,000 b/d, 70 percent of which is Bakken production. The state has seen previous drilling booms in the past, but the current cycle has been the most prolific, thanks to horizontal drilling and enhanced recovery methods, "and is likely to be sustainable for longer, in our view."

Local and state government officials in North Dakota, where 80 percent of the Bakken play lies, welcome the oil and gas industry and the jobs and revenue it brings to the local economy, said Dan K. Eberhart, chief executive officer of Frontier Energy Corp., at Platts' 6th Annual Oil & Gas Shale Developer conference in Houston this week. The Bakken drilling boom has created a renaissance in rural North Dakota, providing revenue that's allowing the state a chance to update schools, traffic lights and other infrastructure.

Oil and gas activity is not only creating job within the sector, but creating demand for more restaurant workers, teachers, park rangers an ancillary services. The state government has had trouble filling government jobs in Williston as workers are attracted to the higher-paying oil and gas jobs, and has moved positions back from Williston, the hub for drilling activity, to Bismarck and Fargo to find workers.

However, the need to transport water, rigs and other supplies to and from drilling sites has pushed the average Bakken well cost to $6.5 million, and the combination of winter snow, heavy rains and heavy truck traffic has taken a significant toll on the state's road system. With vehicles 5,000 to 6,000 times heavier than the roads were designed to handle, roads are breaking down, with buckling and large holes as deep as six feet or more, said Eberhart.

Companies such as Hess have taken initiatives to support the local road system in North Dakota and communicate with local officials on rig movements, Eberhart said. Efforts such as Adopt-A-Road programs are needed, Eberhart said, and oil and gas producers should donate manpower and supplies to help maintain road infrastructure.

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Well Completion Prog. Underway at American Petro-Hunter's N. Oklahoma Proj.

- Well Completion Prog. Underway at American Petro-Hunter's N. Oklahoma Proj.

Tuesday, June 14, 2011
American Petro-Hunter Inc.

American Petro-Hunter advised that the well completion program is fully underway and that production testing of the Mississippi oil formation is currently ongoing at the recently drilled NOM1H Horizontal well at the Company's growing North Oklahoma Project. The well is being readied and prepared for the onset of commercial production.

The completion phase of the well, including swab and production testing, is being undertaken in combination with the immediate installation of long term production facilities including a pumping unit, tank battery, ancillary metering and electrical equipment on the lease. The determination to rapidly move forward and complete the production facilities was based on a confident expectation that the Company will be generating oil sales from the lease near the end of June or early July.

A decision to move ahead with a full completion program was initiated when NOM1H reached the engineered T.D. of the 1,600 foot horizontal leg with excellent oil and gas shows encountered in the form of strong oil fluorescence; gassy oil shows and gas kicks along the drilled lateral. Subsequent results have offered continued favorably trending data, and as such, have reinforced the Company's expectations for viable commercial production at the lease.

The NOM1H well is the first of a planned series of horizontal wells designed to test and develop oil and gas in the 100 foot thick limestone Mississippi Formation.

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Directional Drilling Commenced at North Oklahoma Project

- Directional Drilling Commenced at North Oklahoma Project

Wednesday, May 25, 2011
American Petro-Hunter Inc.

American Petro-Hunter updated the drilling progress of the NOM1H Horizontal well at the Company's North Oklahoma Project.

Directional drilling has now commenced. The K.O.P. (kick off point) has been reached, and the well is now entering the curved section of the hole. The well plan calls for approximately 1,600 feet of lateral to be drilled in the Mississippi formation before reaching a total depth of about 5,300 feet, with a true vertical depth of about 3,900 feet.

The NOM1H well is the first of a planned series of horizontal wells designed to test and develop oil and gas in the 100 foot thick limestone Mississippi Formation. Once the lateral portion reaches its engineered length, a period of testing and evaluation will commence.

In related news, a neighboring major independent oil company has received a permit to proceed with the drilling of its first horizontal test of the Woodford Shale in Payne County. This nearby well is engineered for a total depth of 9,177 feet with a true vertical depth of 4,300 feet. As American Petro-Hunter is planning a horizontal well into the Woodford Shale as part of our 2011 development program, the results of this neighboring well will prove instrumental towards the timing of our first horizontal efforts in the formation.

Company President Robert McIntosh stated, "The lateral turn of the drill into the horizontal phase means we are now entering the objective pay zone in the Mississippi Formation. Over the next week, drilling operations will be closely monitored by the directional drilling engineer to ensure we stay in the Mississippi for the duration of the operation. The upcoming testing phase is a critical step in the determination of our next well as we gear up for a very busy summer of drilling."

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'Fracking' Deemed Eco-Safe at Hearing

'Fracking' Deemed Eco-Safe at Hearing

Thursday, April 14, 2011
Tulsa World, Okla.
by Jim Myers

Oklahoma Corporation Commissioner Jeff Cloud told key U.S. senators that his agency's record on protecting water from pollution makes it clear that states, not the federal government, should regulate hydraulic fracturing.

The decades-old practice has helped spark a natural-gas boom in parts of the country, along with growing controversy.

"During more than half a century of hydraulic fracturing experience, there has not been a single documented instance of contamination to groundwater or drinking water as a result of hydraulic fracturing," Cloud told the Senate Environment and Public Works Committee.

That record, he said, covers more than 100,000 wells in Oklahoma.

Cloud's testimony triggered praise from an unlikely source, Sen. Ben Cardin, D-Md., who not only led the hearing into natural-gas drilling and public health but who also represents a state that has imposed a moratorium on "fracking operations."

Cardin was critical of both the industry, which he accused of failing to meet even minimally acceptable performance levels for protecting human health, and regulatory agencies that in his view also have failed to do what is necessary to protect drinking water supplies.

What especially impressed Cardin was Cloud's explanation that Oklahoma requires the fluids used in fracking to be either recycled or injected into wells.

Cloud repeatedly offered assurances that those fluids never get into the state's water.

Cardin urged other states to follow Oklahoma's lead.

"I think we need to learn from best practices, and we have seen some of that catch on from other states," he said, also citing the record in Colorado.

In some areas, the fluids reportedly are taken to municipal wastewater treatment plants.

Sen. Jim Inhofe of Oklahoma, the committee's top Republican and a key player on environmental issues in Congress, also welcomed Cloud's testimony about the state's "long and successful history of regulating hydraulic fracturing."

"Oklahoma has long been a leader in natural gas production, and hydraulic fracturing plays a key role in providing affordable domestic energy," Inhofe said.

Tuesday's hearing came as natural gas is generating more attention, both negative and positive, as an alternative to oil as a transportation fuel. Rising oil prices and an abundance of domestic natural gas have sparked the interest of politicians, but environmental concerns accompanying the gas boom have prompted states like Maryland and New York to step back from increased drilling activity.

Sen. Robert Casey, D-Pa., is sponsoring legislation to repeal the so-called loophole for the industry and require the disclosure of chemicals used in fracking.

Casey admitted that for decades his state did not take the correct approach to regulating coal mining. Today, he said, "we have to get it right on natural gas."

According to Cardin, who cited a number of violations, and statements from others at the hearing, Pennsylvania is still struggling when it comes to regulation.

The U.S. Environmental Protection Agency also did not escape critical questions, especially concerning its take on the use of diesel fuel in fracking and whether firms that use diesel fuel must apply for a permit.

Breitling Spuds Oklahoma Well

Breitling Spuds Oklahoma Well

Friday, March 25, 2011
Breitling O&G Corp.

Breitling has spud the Breitling-Magnolia #2, the second of two wells in its Breitling-Magnolia prospect in Pottawatomie County, Oklahoma. The first well, the Magnolia #1, encountered multiple potential pay zones on its way down to its 4,500 feet. The primary objectives of the Magnolia #2 are the Wilcox Sand at 4500', the Simpson Sands at 4400' and the Hunton at 4175'. A secondary objective includes the Earlsboro Sand at 3625'.

The proposed Magnolia #2 well is located within a 240-acre closure mapped at the Simpson and Wilcox Sands and the Hunton Sand at above an estimated total vertical depth of 4,500 feet.

"If this Magnolia #2 trends like the Magnolia #1 we will have another great well here," said Joe Simo, Chief Geologist for Breitling Oil and Gas.

Management anticipates the well will reach total depth in about 7 days. Well completion and testing on the Magnolia #2 well should begin during the first week of April 2011.

Breitling Oil and Gas CEO Chris Faulkner stated, "Most of the geology on Magnolia #2 mimics what we anticipated and now have confirmed after drilling and logging the Magnolia #1." Faulkner added, "Based on the very positive logs on the Magnolia #1 we expect Magnolia #2 to be a producer as well."
Breitling has current oil and gas exploration projects all over the United States.