Norstra Energy, the oil and gas explorers with over 10k acres of prime Bakken land in Montana and targeting the South Sun River Prospect (Bakken Fairway, northwest Montana) for horizontal well development, reported today that the company has entered into a strategic farm-out deal on the South Sun River Prospect with Spokane-based, Summit West Oil, LLC.
CEO of NORX, Glen Landry, a 30-year veteran hydrocarbon bloodhound and third generation geologist who has spent several decades exploring for oil and gas in Montana and North Dakota, pointed to the robust historical data the company has on the prospect, including drilling, first hand exploration, and seismic analysis (many of which Landry himself was involved in), as strong indicators of the deeper oil potential at South Sun River. Of course, back when most of this extant analysis was done, we simply did not have the technology to commercially access the formation at these depths.
With such abundant historical data in-hand, NORX’s team of engineers is supremely confident about the productivity potential on the prospect. Landry himself leads the chorus and with the last five years of his work being almost entirely dedicated to Montana/North Dakota analysis of the Bakken formation, it is obvious that he’s not just whistling Dixie. With 10 years left on most of their leases and a healthy acreage footprint that exceeds 10k acres, markets have a rapidly emerging Bakken developer in NORX, with solid longer-term vectors.
Bakken horizontals are relatively straight forward to implement as well and there are few if any technical or logistical hurdles to clear on the road moving forward. There are already in excess of 200 rigs drilling across the Williston Basin, stretching out across hundreds of square miles and the Bakken Fairway has all the potential to develop into the next Williston Basin according to Landry. Seems reasonable looking at the geology, and NORX is confident that the South Sun River Bakken Prospect is well within the maturity window. Moreover, Shell Oil’s Krone offset well, just a mile or so away (which was drilled in the past during exploration for deeper targets), has confirmed oil already.
The company has a key position in the area and is set up to become a serious player in the near future. That’s why the farm-out agreement is making sector analysts buzz with excitement, even as Norstra delivers some $200k in short-term working capital for drilling and completing the first well series. The roadmap has the first well going in by December of this year, with a second and third well being completed in June and December of 2014. Great deal for Norstra and a superb play overall, as NORX will be earning 100% WI in the entire farm-out acreage, with WI earned only on the given spacing unit drilled should Norstra merely accomplish partial success, sinking fewer than the slated three wells.
Given the similarities in geological makeup and log data between the Bakken Fairway in northwest Montana and the Williston Basin, the company is sitting on a potential gold mine here. From resistivity log data to regional isopach maps of formation maturity, well site selection is well-informed and NORX even has that extant seismic data to go off, some of which Landry himself helped gather (and thus is intimately acquainted with). It will be extremely interesting to hear more details coming out of NORX’s prospect as we approach the December deadline for the first well’s completion and investors can likely expect big news as all the indicators are positive.
For more information on Norstra Energy, visit www.NorstraEnergy.com
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