More exploratory drilling is on tap in two areas of eastern Nevada.
Pioneer Oil & Gas, Midvale, Utah, said it signed a confidential joint venture agreement with a major oil company to develop its 16,460 acre Maverick Springs prospect in Long Valley (OGJ, Dec. 31, 1991, p. 16). The joint venture partner plans to shoot seismic in the area, but no drilling is required at present.
Pioneer said seismic closure, surface geology, and a pronounced soil gas anomaly indicate potential on the prospect, which is in 22n and 23n-58e, White Pine County. Pioneer retains a 15% interest after payout.
Meanwhile, Pioneer reported other developments associated with its 10,000 acre West Grant Canyon prospect 4-5 miles west of Grant Canyon/Bacon Flat fields in Railroad Valley of Nye County, Nevada's principal producing region.
Cenex Inc., Billings, Mont., took a 480 acre farmout from Pioneer and plans to drill a well in 14-7n-56e, less than 1/4 mile from the prospect acreage, Pioneer said.
Anschutz Corp., Denver, requested farmout support for a well immediately south of the West Grant Canyon acreage block, Pioneer said.
Pioneer said the West Grant Canyon area appears to contain four drillable prospects, Pioneer and its partners control all of two prospects and parts of the Cenex and Anschutz prospects.
Young Resources Inc., Fort Worth, is spearheading the West Grant Canyon effort with Pioneer.
Pioneer also said it has completed funding for more than 87.5% of its West Grant Canyon prospect. It plans to drill a well on completion of funding. It hopes to spud in December 1992 or January 1993.
Pioneer and Young recently filed with the U.S. Bureau of Land Management a notice of staking of the proposed location, the 21-31 West Grant Canyon-Federal, in 21-7n-56e.
Balcron Oil Co., Billings, completed a well in 17-7n 57e in Bacon Flat field of Nye County that produced at a rate of 5,400 b/d of oil on a 1 hr test of Devonian Guilmette open hole at 5,164-5,240 ft (OGJ, Aug. 31, p. 55). Reports indicate that well has been placed on production at the rate of about 1,000 b/d.
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