Little Swan Oil & Gas Prospect
The Company has entered into a Farm-In Agreement with Saturn Minerals Inc, (“Saturn”) whereby the Company can earn a 25% interest in Saturn’s 400 square mile Little Swan oil & gas prospect, which is in close proximity to Saturn’s 250 square mile Bannock Creek oil and gas prospect, both of which are in Saskatchewan’s Williston Basin, on each side of the town of Hudson Bay.
A seismic program has recently been completed on Little Swan and the Company is awaiting analysis & interpretation results.
Saturn reports the potential structures identified on the Bannock Creek seismic data are up dipped closed fault bounded anticlinal traps affecting the Red River, Winnipeg and Deadwood Formations which are known to produce light oil throughout the Williston Basin. Saturn’s geophysical/geological model has been based on existing producing pools such as the fault bounded “Tyvan” Oil pool in T13 R13W2 (71 million barrels in place), the “Montmarte” Oil pool in T13R11W2 (26 million barrels in place) and the Chapleau Lake Oil pool in T14 R12W2 (26 million barrels in place), all of which produce from the Ordovician Red River (Yeoman) and Winnipeg Sand Formations. These underlying Formations within the Bannock Creek area, and by extension, Little Swan, along with the proprietary Saturn owned seismic data acquired to-date has resulted in an extremely strong exploration model for the presence of analogous closed structures.
Saturn’s new data has confirmed the anticlinal four way closure of a drillable prospect on the Bannock Creek property. The closed fault bounded roll over structure is 480 acres minimum in area and has the potential to contain up to 38 million barrels in place of resource from all three targeted reservoirs. The closure of this structure, which compares very favorably with existing producing light oil pools to the south of Bannock Creek and Little Swan. The validation of the exploration model has resulted in Saturn selecting this prospect as the Company’s first exploration well which will be drilled and completed conventionally to a depth of less than 1000 meters. The first well drilled at Bannock Creek in May 2015 and was abandoned before intersecting the projected oil bearing horizon due to technical difficulties. A new well is being planned.