By OGJ editors
HOUSTON, June 2 -- Vaalco Energy Inc. is buying a 70% working interest in 5,214 acres of the Bakken play in Sheridan County, Mont., from a privately held company.
The acreage adjoins Flat Lake field, which produces from the Middle Bakken formation.
Robert Gerry, Vaalco chairman and chief executive officer, believes there could be 100 million bbl OOIP with a recovery factor of 5-10%.
“Our partner has participated in over 200 Bakken wells,” Gerry said. The Houston independent declined to discuss financial terms or name the partner, saying Vaalco is reviewing additional opportunities in the area.
Operatorship is being discussed by the partners, who anticipate drilling a well during the fourth quarter at a net cost of $3.5 million to Vaalco.
Vaalco’s properties and exploration acreage primarily are in Gabon, Angola, and the US.