Black Stallion Oil & Gas receives Sproule's phase I work programme report

Black Stallion Oil & Gas Inc. has announced that Calgary-based Sproule Associates Ltd has completed Phase I of a four-phase work programme on the Company's 12 233-acre Woodrow Prospect in northwest Montana, within the Alberta Basin Bakken fairway, due west of the Williston Basin.

Producing wells to the North and East were identified at each of the five main reservoir horizons: Swift, Madison (Sun River Dolomite), Bakken, Nisku and Duperow. Sproule reached the conclusion that the overall structural location is favorable for hydrocarbons to migrate updip onto the regional high, and as such recommended proceeding with Phase II of the Work Programme.

Black Stallion received Sproule's Phase I Data Compilation Report on 17 November 2015. The report covered Sproule's initial regional review of prospect, including a regional compilation and synthesis of information on the study area (see further below for complete list of items reviewed). Sproule integrated all available public domain data into a 3D visualization environment and data base to improve the spatial understanding of well, seismic, oil and gas tests and producing fields. Depth structure surfaces for the five main reservoir horizons were created using the existing well tops information. As was anticipated, well penetrations for the reservoir targets decrease and are very sparse below the Madison.

Black Stallion's CEO, George Drazenovic, said: "We now have a much better understanding of the nature of our holdings. Sproule's depth structure maps in the Phase I report suggest that local structural culminations may be present on the overall northwestward plunging structural feature. The acquisition of additional seismic data in Phase II will provide us with further delineation."

Sproule's regional review of prospect included the following items:

• Existing studies and databases, such as the June 30, 2014 evaluation of prospective resources undertaken by the author of the Company's NI 51-101 report, B.L. Whelan, P. Geo.
• Land sale data made available to Sproule.
• Well locations, tops, shows, production history compiled from Sproule's Accumap database.
• Discovery Digest and Spark publications.
• Internet search materials.
• Montana State publicly available files.
• Publicly available satellite imagery and digital elevation data.
• A base map from seismic vendors of available 2D & 3D seismic data for purchase.
• Available data from nearby analogue fields along with their well test and production data.
• Available DST test reports, production test results, production logging. interpretations, monthly production volumes by well and pressure histories obtained from the areas of interest.

Building on the findings of the Phase I report, Phase II of the Work Programme will mature the Woodrow Prospect exploration play by:

• Acquiring well log data for key wells, including regional and local maps with Digital (D) and Raster images (R), which would be digitized.
• Constructing detailed stratigraphic correlations between all wells in the database to refine the geological well tops and reservoir thickness and quality variations.
• Providing petrophysical analysis of reservoir zones to determine appropriate ranges of reservoir parameters for use in probabilistic volumetric calculations.
• Continuing search for seismic data.
• Providing quality check and Company purchase of appropriate 2D seismic data.
• Re-processing 2D seismic as required.
• Interpreting 2D seismic to refine the structural model between the sparse well control.
• Integrating the revised well correlation framework and 2D seismic interpretations to produce refined mapping of each potential reservoir zone.
• Calculating preliminary in-place volumetric estimates for identified prospective structures and ranking attractiveness.
• Identifying potential drilling targets.

The company expects to begin Phase II of the Work Programme and anticipates the ongoing support of the Sproule team.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19112015/black-stallion-receives-sproules-phase-i-work-programme-report-1762/