Montana: Vaalco, Magellan eye deeper zones at Poplar

Vaalco Energy (USA) Inc., Houston, will drill three wells to the Bakken and deeper formations in the East Poplar and Northwest Poplar units in Roosevelt County, Mont., under an agreement with a subsidiary of Magellan Petroleum Corp., Portland, Me.
Sept. 9, 2011

Vaalco Energy (USA) Inc., Houston, will drill three wells to the Bakken and deeper formations in the East Poplar and Northwest Poplar units in Roosevelt County, Mont., under an agreement with a subsidiary of Magellan Petroleum Corp., Portland, Me.

Upon completion of the three wells drilled at its sole expense, Vaalco will have earned a 65% working interest in the deep intervals in Poplar field. One well is to spud by June 1, 2012, and the other two by Dec. 31, 2012. Vaalco paid Magellan $5 million upon closing of a lease purchase, sale, and participation agreement.

One well will be drilled horizontally to test the Bakken, one well will be drilled vertically to test the Red River formation, and a third will be targeted at Vaalco’s discretion.

In addition to its 35% working interest in the deep intervals, Magellan will continue to hold its current interest in all formations above the Bakken, including the producing Charles and Tyler formations where all Poplar proved and probable reserves are located. It will use proceeds to continue its Charles recompletion program and evaluate shallower formations.

About the Author

Alan Petzet

Chief Editor Exploration

Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.

Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.

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