West Canyon Energy Signs LOI for Spring Creek Prospect in North Dakotaadmin
West Canyon Energy Corp., a Houston-based energy exploration and production company focused on high impact energy prospects in the continental United States, announced today that it has signed a Letter of Intent to acquire one-hundred percent (100%) working interest, in the Spring Creek Prospect.
On March 25, 2008 we entered into a letter of intent (“LOI”) with Slope County Oil Company to acquire their existing leases in the Spring Creek Red River Prospect for the payment of $240,000 and $7,500 in geologist fees. The Company will acquire 4,800 acres of property in North Dakota with estimated potential reserves of 60 million barrels of oil (MMBO).
Spring Creek is located in the Williston Basin in Township 136 North, Ranges 104 and 103 West of Slope County, North Dakota, on the two unnamed structures mapped with geomorphological imaging to the Northeast of the Cedar Creek Anticline. These structures are thought to be penecontemporaneous with the Cedar Creek Anticline and are likely folding features associated with its formation. The area has a proven track record of Red River formation oil and gas production. The Prospect under consideration is bracketed to the northeast by successful wells drilled by Hunt Oil Company and to the southwest by the production of the Cedar Creek Anticline.
The primary target formation of this Prospect is the Ordovician Red River at depth of about 11,400′. The secondary target formations are the Devonian Birdbear (Nisku) at a depth of about 9800′ and the Mississippian Lodgepole at a depth of about 9450′. There are tertiary shallow gas target formations that may be assessed in the Cretaceous, being the Eagle Sandstones and Niobrara. All of these target formations can be evaluated from a single test well placed over one of the twelve Lodgepole Reefs mapped on the Prospect.
The Bakken Play Region
The Bakken Play is a geological trend approximately 2 miles beneath the surface which has shown potential for extremely prolific hydrocarbon production. Because of its depth, recent technological progress with drilling, and reserve analysis technology, it has recently attracted attention from major North American players. According to this article from NextEnergyNews.com: “It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil, that real excitement and money started to flow in North Dakota.” The same report indicated that some estimates have reserve potential as high as 200 billion barrels of oil.
Industry Presence in North Dakota
The Red River Formation in southwestern North Dakota has been worked extensively over the past decades by a number of exploration companies including: Burlington Resources Inc., Continental Resources Inc., Encore Operating LP and Hunt Oil Company. Major industry players such as Marathon Oil, have invested in over 200,000 acres of property at a cost of 1.5 billion dollars with plans of spudding over 300 exploratory wells in the next 5 years. They, along with other major industry players, have also entered into the North Dakota exploration scene with hopes of making discoveries and improving infrastructure. According to 3P10 official government report, as late as December 2006, possible recoverable reserves top the 1.6 billion barrel mark throughout the state.
North Dakota has been the subject of many different independent and government resource analyses with estimates of reserve potential being in the neighborhood of 660 million barrels, as stated by the North Dakota Department of Mineral Resources (DMR). The report also states that the average production in the state is approx 109,000 barrels of oil per day in 2006, and nearly 40 MMBO per year. By the end of 2006, there were more than 4,100 wells capable of producing in the state. As well in that year, over 62 billion cubic feet of natural gas was produced in the state. According to the same report, all time crude oil production in North Dakota is in excess of 1.5 Billion barrels.
Several different government geological reports with an overview of current potential and probable reserve estimates are available on the North Dakota Industrial Commission, Department of Mineral Resources, Oil and Gas Division’s website, https://www.dmr.nd.gov/oilgas/.
Fred B Zaziski, Chairman of West Canyon Energy, states: “North Dakota has recently become a prolific ‘hot-spot’ for oil and gas. It was an easy decision to seek out projects in the area, and I am excited at the potential this brings to our company.”
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About West Canyon Energy Corp.
West Canyon Energy Corp. is a publicly traded independent oil and gas exploration company with headquarters in Houston, Texas. West Canyon Energy aims to secure and develop a portfolio of oil and gas properties in Colombia and the continental U.S. with proven producers and operators. West Canyon Energy trades on the NASD OTC BB under the ticker symbol: WCYO – “West Canyon Energy Corp., working for production of oil and gas properties throughout America.”
On behalf of the Board
Fred B. Zaziski, Chairman
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as “expects”, “intends”, “plans”, “may”, “could”, “should”, “anticipates”, “likely”, “believes” and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company’s belief that West Canyon Energy Corp. can identify and successfully negotiate leases for oil and gas properties in Colombia and that the Company can participate in the exploration of those properties. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission.
West Canyon Energy Corp. Fred B. Zaziski, Chairman, 1-888-977-6884 firstname.lastname@example.org