In the oil sector, the old baseball adage “hit’em where they ain’t” applies to exploration. If others are looking offshore, look onshore. If they’re looking in Texas and Oklahoma, look in Montana and North Dakota. Smaller oil and gas companies are quickly finding places to drill for oil and gas that many others have looked over. If they can bring home a few wells, they will be bringing home some cash for investors.
Western Standard Energy Inc., a development stage oil and gas exploration company, is currently working with three properties located in Montana and North Dakota. Initial geological testing and survey results point to encouraging reserves located at the company’s wholly and partly owned leases.
Currently estimated to hold 3.5-4 billion barrels of oil by the US geological survey, and countless cubic feet of gas, the company is in good company in its exploration stage. ConocoPhillips, Marathon Oil, MDU Resources and Bingham Inc. are each operating in the same region and expect positive results from their exploration and production efforts. Estimates are favorable, giving an assumed $90 PPB of oil, the company’s holdings place revenue from future operations at $2.66 billion with relatively low extraction costs.
Although the company is currently in the testing phase of the operations, it is felt that reserves in the area show solid potential. The company’s holdings lie just east of Montana’s Bowdoin Dome field which produced 12BCF of gas in 2005. Additionally, the company finds itself in possession of a parcel which has similar characteristics to a Bowdoin field where significant methane gas has been discovered. Montana and its surrounding gas/oil geologic structures account for roughly 2% of domestic oil production in the US and appear to be ready to support Western Standard Energy’s exploration and revenue programs well into the future.
Let us hear your thoughts below: