Lateral Pond Niobrara and Mowry Shale
Campbell County, Wyoming
Termo continues to study the potential for horizontal Niobrara and Mowry Shale development in our Lateral Pond project area near Gillette. With 15,000 gross acres in the project area, it has the potential to be a significant resource play for the company.
Our first attempt at producing from the Mowry was the Bishop #43-17 well, drilled in early 2010, and completed with a three stage ‘frac’ into the upper, mid, and lower portions of the zone. The first portion of the frac went off as planned, but the third stage did not work.
We have conducted some fairly extensive evaluation and diagnostic work on the well and it seems that the more data we get the more questions are raised. NuTech Energy Alliance of Houston conducted an extensive evaluation of the logs and the fracture stimulation. The evaluation tells us that we have approximately 100 feet of pay per shale zone, both contain significant volumes of oil and both have very low permeability. In addition, the frac impacted the Mowry interval to a distance of 250 feet from the well bore.
The bottom line from these studies is that oil is present but the ability to unlock it from the formation is the challenge before us at this time. We remain hopeful that we will find a way to access these reserves and make the Mowry a commercial venture. We have gone back to the drawing board and are ramping up our technical knowledge. We are also gaining knowledge by participating as a non-operator in another well in the area.
Based on other operator’s activities in the area, including Chesapeake, we remain confident that the secrets of the Niobrara and Mowry shale in this area will eventually be unlocked and we intend to be there when it happens.
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