Pearl to buy Montana, Utah heavy oil deposits

Pearl E&P agreed to acquire 100% interests in heavy oil deposits in Montana and Utah from PetroHunter Energy for as much as $30 million.

By OGJ editors
HOUSTON, Oct. 2 -- Pearl Exploration & Production Ltd., Calgary, agreed to acquire 100% interests in heavy oil deposits in Montana and Utah from PetroHunter Energy Corp., Denver, for as much as $30 million.

Pearl said it looks forward to starting an aggressive drilling program.

The assets are the Promised Land prospect, north of Great Falls, Mont.; Fiddler Creek project in Carbon, Stillwater, and Yellowstone counties southwest of Billings; and West Rozel and Gunnison Ridge prospects in the Great Salt Lake northwest of Salt Lake City. Closing is expected by Oct. 31.

Promised Land consists of 49,000 net acres. Fiddler Creek has 23,000 net acres with an estimated 500 million bbl of original oil in place, of which 25 million bbl is estimated to be proved undeveloped and probable reserves.

West Rozel is estimated to contain 385 million bbl of 4-9° gravity oil in place with net probable reserves of 19 million bbl and net possible reserves of 19 million bbl. Gunnison Ridge, 150,000 acres west of West Rozel, potentially has 285 million bbl of oil in place.

More in General Interest