BNV-Norstra deal sets Montana gas drilling

Privately held BNV Energy LLC, Houston, has entered an agreement with Norstra Energy Inc., Spokane, to drill two natural gas wells and build a related gathering system to earn a 60% working interest in 5,382 acres in Northwest Montana.

The agreement calls for BNV to spend $1.5 million for the drilling and gathering work in Lewis and Clark County and to complete the projects by Sept. 30. It provides for an extension until June 15, 2015, for the second well.

The BNV working interest is to come out of the 80% working interest acquired by Super Nova Petroleum, Vancouver, BC, in a farmout from Norstra in January covering about 10,000 acres in what Norstra calls its Milford Colony Project. That area includes the acreage covered by the BNV agreement and is close to the Northwestern Energy gas pipeline system.

Norstra retains a 20% carried interest.

BNV, after depositing $400,000 in a drilling escrow account, will receive 4 million warrants to buy Norstra stock.

Norstra characterized the deal as part of a shallow gas play developing along with the Bakken oil play on the Rocky Mountain front.

“We were and are a company very interested in the deeper oil in the Bakken formation,” explained Glen Landry, chief executive officer. “But the potential natural gas in Lewis and Clark County cannot be ignored, with its several hundred feet of pay through two separate sand formations reaching depths of almost 5,000 ft.”

Related Articles

Suncor, GE aim to reduce GHG emissions, water usage in oil sands

07/09/2014 Suncor Energy Inc., Calgary, and GE have signed two agreements that aim to reduce greenhouse gas (GHG) emissions and water usage in the oil sands.

EIA: Low-permeability formations driving Permian oil production surge

07/09/2014 Crude oil production in the Permian basin has increased to 1.35 million b/d in 2013 from 850,000 b/d in 2007. Since March 2013, the Permian basin h...

EIA expects higher gasoline prices for driving season, full year

07/08/2014 During the April-September summer driving season this year in the US, regular gasoline retail prices will average $3.66/gal, 8¢/gal higher than las...

Mongolian petroleum law passage aims to boost foreign investment


Wolf Petroleum Ltd., Perth, reported the passing of a new petroleum law in Mongolia designed to boost foreign investment in the country.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected