Slawson, Voyager ink Niobrara oil venture

By OGJ editors
HOUSTON, June 28 -- Voyager Oil & Gas Inc., Billings, Mont., will explore and develop 48,000 net acres prospective for oil in Cretaceous Niobrara held by Slawson Exploration Co. in the northern Denver-Julesberg basin.

Slawson will begin a continuous drilling program in early July with an initial series of three test wells expected to be completed by October. If results are good, Slawson will target 57 more locations throughout 2011. The acreage is in Weld County, Colo., near high-rate, horizontal Niobrara completions.

Voyager has purchased a 50% working interest in the 48,000-acre block for $7.5 million and will participate on a heads-up basis on all wells drilled, as well as participate for its proportionate working interest in all other acreage acquired in an area of mutual Interest consisting of all of Weld County and Laramie County, Wyo.

Voyager will fund the purchase price and initial drilling commitments out of cash on hand and cash flow from current production. Voyager remains fully funded through 2010 with no debt and $12.5 million of cash on hand.

Voyager controls 147,000 net acres in the following five primary prospect areas:

• 24,000 core net acres in the Bakken formation in North Dakota and Montana.

• 24,000 net acres targeting the Niobrara formation in Colorado and Wyoming.

• 640 net acres on a Red River prospect in Montana.

• 33,500 net acres in a joint venture targeting the Mississippian Heath shale formation in Musselshell, Petroleum, Garfield, and Fergus counties, Mont.

• 65,000 net acres in a joint venture in Tiger Ridge gas field in Blaine, Hill, and Chouteau counties, Mont.