Cedar Valley, Iron County, Utah
Forest Gate Energy has acquired from Vanterra Energy Inc. interests ranging from 52% to 70% in all Utah oil licenses belonging to Vanterra. The Licenses are located in Cedar Valley, Iron County, Utah and are as follows:
Federal Lands – 52% interest in approximately 2,560 gross acres, with a term of 10 years, from February 2006 to January 2016.
Freehold lands – 52% to 70% interest in approximately 2,600 acres, with a term of 5 years from June 2005 to June 2010, renewable to June 2015.
Forest Gate and Vanterra are planning to re-drill a 4,000-foot well targeting the Dakota sands at 2,600 to 2,800.
Includes: four potential Dakota Sands with initial production potential of 50 to 200 BOPD per target, and a basement target with an additional potential of up to 500 BOPD.
Proposed target is an offset to the Southern Utah Oil Company #1 well drilled in 1949, which had significant oil shows reported in the Dakota sandstone as well as the basal sandstone of the well. The 1949 Schlumberger electrical log indicated good permeability and high resistivities within the Dakota sandstone.
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