G. Alan Petzet
Exploration Editor
Saskatchewan appears to have its highest flowing oil wells since completion of several strong Devonian Winnipegosis reef oil discoveries in 1987 and 1988.
Mark Resources Inc., Calgary, and Saskatchewan Oil & Gas Corp. (Saskoil) have drilled six wells in an area near Minton, Sask., about 100 miles south of Regina. The Williston basin wells are north of the U.S. border at Sheridan County, Mont.
One well was dry, but the others are capable of flowing 500 b/d or more at full production, the company confirmed.
Mark hiked its 1990 capital budget, originally set at $64 million in November 1989, to $90 million, of which $25 million is allocated to the Minton area.
The Minton outlays are earmarked for development drilling, production facilities, land acquisitions to date, and further acquisition.
Based on drilling and production results through mid-June, the company expects to drill as many as 17 development wells and four wildcats in the area by yearend 1990.
MINTON DISCOVERY
Mark holds 60-80% interests in the six wells at Minton, and Saskoil, the only partner, owns the rest.
Three wells, including one being completed as of mid-June, produce Ordovician Red River oil, and two produce Winnipegosis oil.
Well depths are 8,850-9,850 ft.
Red River production has been rare in the Canadian Williston. Mark has declined to reveal reserve estimates or reservoir characteristics but says the Winnipegosis formation is not the reef type that has produced further east near Estevan, Sask.
The combined rates of the five producing wells will be 833 b/d of oil, including 605 b/d net to Mark. Allowables are 108-208 b/d/well.
Mark was well along in late June with the drilling of a seventh well, 11-17 Minton.
Assuming all potential locations are successfully drilled, the area's production could reach 2,000 b/d net to Mark by yearend, the company said.
It has acquired more than 150,000 net acres of exploratory land on other potential deep oil prospects in the general area.
The Minton discovery might not have been drilled without the Saskatchewan royalty holiday program, said Daryl Birnie, Mark president.
He said the field has "two zones capable of development, each of which will stand on its own merit, and because its oil qualifies under the Saskatchewan royalty holiday program, it offers an attractive rate of return and payback."
The Minton area is expected to propel the company's net production in 1990 to an average of 8,600 b/d of oil and natural gas liquids, up 16% from 1989, and 85 MMcfd of gas, up 28%.
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