Emma Butte
Garfield County and Petroleum County, Montana
Summary | Leasing Prospect | Land Map | Geological Report | Structure Map | Montage | Cross Section W | Cross Section X | Cross Section Y | Cross Section Z
EXECUTIVE SUMMARY
We have put together an oil resource play in Central Montana near conventional Heath-sourced oil production. We are offering 13,383 gross/ 9,503 net mineral acres in the West Emma Butte Prospect for $100 an acre with an 80% NRI. EOG just drilled a well in Section 31, Township 12 North, Range 28 East, which is located in the West Emma Butte area and recovered 170' of oil saturated core in the Heath. They also had good shows in the Amsden (just above the Heath), the Lodgepole and the Bakken. Additionally, Central Montana Resources and Cirque have recently permitted three wells around the acreage.
The prospect is located in Petroleum County, traditionally part of the Pennsylvanian Tyler Sand Play area of Central Montana. The primary target is the late Mississippian, Chester-age Heath formation. The formation has long been recognized as the source rock for most of the oil produced in central Montana. There are forty-three Heath-sourced oil fields in the area producing from seven different reservoirs, including the Heath formation. Cumulative production from these fields is more than 107,000,000 BO.
Until now the focus of exploration and development in the region has been almost entirely on conventional reservoirs using vertical wells. The Heath formation is an ideal candidate for an unconventional, horizontal well resource play. Throughout much of the prospect area, the Heath is approximately 200 ft thick. A 50 to 75 ft thick organic-rich, radioactive limestone interval within the Heath provides a horizontal drilling target. Total organic carbon values in the Heath are high. Vitrinite reflectance data indicate the formation is at peak oil generation. The Heath contains vuggy porosity as well as natural fracture porosity.
Secondary objectives in the prospect area include the six other Heath-sourced reservoirs that overlie the Heath and currently produce in the area. Foremost of the six is the Amsden formation, which already produces from a horizontal well in Big Wall field.
Activity in the central Montana region continues to accelerate with the announcement of plans to drill four new wells. Cirque Resources LP (Denver, CO) has announced plans to drill a 5565 ft. Lodgepole test in T14N, R29E, Section 18. The Lodgepole is located about 1500 feet below the Heath formation, which will enable Cirque to core and test the Heath interval on the way down. Cabot Resources (Houston, TX) is planning two horizontal Heath wells, one in T11N, R26E, and True Resources (Casper, WY) is planning to drill a horizontal Heath well in the Devil’s Basin area.
Heath Geological Report (PDF - 15.9MB)
Heath Structure Map (PDF - 7.02MB)
Stratigraphic Cross Section W - W (PDF - 6.12MB)
Stratigraphic Cross Section X - X (PDF - 2.83MB)
Stratigraphic Cross Section Y - Y (PDF - 5.07MB)
Stratigraphic Cross Section Z - Z (PDF - 2.47MB)

