The first well drilled by the Company in 2012 was the Forent Alton #1 well, which was rig released March 13, 2012, after reaching a total depth of 996 meters. This well was positioned where a Gays River reef was anticipated to have been built up on a geophysically identified Meguma basement structural high. This geological interpretation was based on gravity gradiometry, 2D and 3D seismic information and incorporated third party well information. The well targeted the flank of the anticipated reef to increase the probability of encountering significant porosity in the Gays River formation and encountered the flank of a Gays River reef as predicted. During drilling several significant natural gas shows were detected and live oil was found in the mud tank. This validated the existence of an active petroleum system and the presence of natural gas and free hydrocarbon in the system. Petrophysical logs evaluated by Forent's technical team indicated that the Gays River reef build up had minor porosity at the well bore. The Company does not anticipate production from this well, however it has been cased and left in a condition that it may be easily re-entered for further evaluation. The results of this well are considered encouraging and do not preclude future wells drilled into the same reef from being productive.
Forent followed up the drilling of Forent Alton #1 with the second well referred to as Forent South Branch #1. This well was rig released April 28, 2012 after drilling to an identified basement at approximately 783 meters from surface. The well targeted the top of a geophysically identified Meguma structural high. The Forent South Branch #1 well encountered the interpreted Meguma structural high, but unfortunately, no Gays River reef build up was present and no hydrocarbons were encountered while drilling the well.
Although it is disappointing that economic quantities of oil and/or natural gas were not encountered in either of the two wells, Forent is extremely pleased to be able to confirm the presence of both Gays River Reef development at depth and obtain positive indications of an active petroleum system. This new information will greatly assist in the assessment of the 8 additional geophysical anomalies currently identified on the Alton Block, allow the exploration team to further refine their geological and geophysical models, and focus future efforts. Forent's intent is to actively pursue Gays River reef oil and natural gas opportunities as well as evaluate the potential of other nonconventional natural gas opportunities on the block.
During the second quarter of 2012, Forent was successful in entering into a joint venture partnership with BlackShale Resources Inc. ("BlackShale"), a wholly owned subsidiary of Houston based Kerogen Energy Holdings LLC. BlackShale is a private company specializing in identifying and exploiting unconventional oil and gas opportunities in Canada. After extensive assessment of regional light oil resource opportunities in Western Canada, BlackShale chose Forent's Montgomery lands as one of its initial projects.
Under the terms of the Agreement, BlackShale has drilled and completed a vertical test well to the base of the Mannville Formation (approximately 3,100 meters) to earn a 70% interest in all PNG rights to the base of the deepest formation penetrated in four contiguous sections of land. Forent retained 30% of the pre-farmout interest in these four sections. BlackShale has the option to drill additional vertical or horizontal wells under similar earning conditions. Forent provided BlackShale with access to the lands and proprietary 3D seismic survey that images most of Forent's Montgomery acreage.
Most Popular Stories
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- GM Bailout Saved 1.2 Million U.S. Jobs, Report Says
- 'Knockout Game': Myth or Menace?
- Questions Remain in Jenni Rivera's Death
- Bitcoin Used to Buy Tesla Car
- Banks Fret as Volcker Vote Approaches
- Paul Walker Fans Pay Respects
- 18 L.A. Sheriff's Deputies Face U.S. Charges
- Yellen Set to Become One of World's Most Powerful Women