Ameriwest Energy Signs Agreements to Proceed With Drilling at Ameriwest Fee #1 Welladmin
Ameriwest Energy Corp. announce that it has finalized requisite drill site agreements towards the spud of the Ameriwest Fee #1 well.
The Company has executed a Surface Use Agreement with the private land owners, thereby clearing the way for immediate construction of a roadbed, and for the proposed future installation of electrical lines, water sources and additional production equipment as needed should the prospect prove viable.
Additionally, the Company has executed an Authority for Expenditure (“AFE”) agreement with local Wyoming-based field operators TCF Services and anticipates commencement of operations as soon as site preparations are completed and a rig can be moved to the field.
As operator of the project, Ameriwest anticipates a 10 day to 2 week period to drill to the target depth of approximately 7000 feet. If a discovery is made, the Company has received a further AFE from TCF Services for the completion costs, and the Company plans to make a rapid determination to complete the well within a further 7-day period as estimated by the field operators.
The well is part of an overall strategic analysis that estimates possible reserves at the Geary Prospect of approximately 3.0 MMBO upon completion of a full field program consisting of 18 wells based on 40-acre spacing. The Ameriwest Fee #1 is the first well of the program and is located in the southwestern portion of the Powder River Basin in a structurally well documented region that is on-trend with production such as the nearby Weststar Keenan Fee 14-34 well with cumulative production of 156,860 BO and also within 1/2 mile of the Weststar Keenan Fee 16-27 well with cumulative production of 166,757 BO to-date. The Ameriwest Fee #1 is also found in proximity to 2 wells located in the Geary Dome field with a cumulative production of 323,617 BO and 29,515 MCF gas.
Company President Walter Merschat states, “As predicted, we have been able to move quickly to spud, and I’m looking forward to what we believe will be very positive results in the near future. As mentioned previously, I have been studying this region closely for the past 25 years and I have high expectations for the entire Geary Prospect. There are so many positive factors that have influenced our planning; from historical data, structural analysis and proximity of nearby production that we remain highly confident in the outcome for this field.”
About Ameriwest Energy Corp.
Ameriwest Energy Corp. is a growing, expertly managed energy company focused on producing underdeveloped oil resources in the prolific Rocky Mountain region of the United States. The company is striking a strategic balance between low-risk tertiary recovery projects and extensively mapped exploration plays with significant upside potential. Visit our website at www.ameriwestenergy.com.