Virtus Oil & Gas is poised to hit it big with its Parowan Project - a 55 477 acre parcel in the heart of Utah's oil-laden Overthrust region. If successful, their 12 000ft deep test well, which is scheduled to begin in September 2015, would mean monumental returns for investors.
The optimism is based on a major find from a decade ago. In 2004, the tiny Michigan-based Wolverine Oil Gas - which wasn't even considered a junior player in the oil exploration business - made one of the largest U.S. oil discoveries in 30 years.
Wolverine's discovery came from acreage it acquired from Chevron Corp. Its success sparked an influx of oil and gas companies into Utah. A decade later, Utah's oil production has increased 166%, reaching 96 000 bpd in 2013.
Other companies are trying to follow in Wolverine's footsteps. For example, Utah-based Richland oil & Gas is pursuing three projects in the Overthrust region.
But it is Virtus Oil & Gas that has some of the most exciting prospects. Virtus' Parowan property lies just 50 miles from Wolverine's landmark find in the Covenant field, and only eight miles from where Delta Petroleum found favourable oil indications a few years ago.
Based on extensive geological surveys, Virtus conservatively anticipates that this Parowan Project holds 266 million boe, which would mean massive returns for its investors. The company also received big news in November 2014 - an independent assessment confirmed the oil riches that lie under the Parowan surface.
Virtus announced that the assessment led to a 58.2% increase in the best estimate of unrisked P50 recoverable resources-turning this already attractive play a must-have investment. Even a microscopic 10% of this would net the company US$2 billion worth of oil.
Shares are low now, trading under US$1.00, but the Virtus' stock is poised to climb quickly as it moves forward on the Parowan project. If Virtus hits the next big discovery in Utah when it begins drilling, its value will skyrocket.
Adapted from press release by Joe Green
Read the article online at: https://www.oilfieldtechnology.com/exploration/09122014/virtus-oil-gas-parowan-project-investment-1963/