“Conventional light oil discoveries of this magnitude have been rare in continental North America for years if not decades,” Arthur Millholland said
Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) announced a ‘significant’ conventional light oil discovery in Wyoming.
The discovery, comprising 1.5bn to 1.9bn barrels of oil in place, was identified spanning Converse and Natrona Counties, Wyoming – with the majority of the estimated 1.275bn to 1.64bn barrels present across the company’s leasehold in Converse and Natrona Counties, Wyoming.
It comprises multiple zones and production has already begun from the lowermost, Dakota Fm, with the discovery well BFU-14-30VF flowing between 100 and 120 barrels of oil per day.
“This is a significant oil discovery and the size of the upside at our Wyoming asset was a surprise to us all,” said chief executive Arthur Millholland.
“We acquired Atomic Oil & Gas in January 2021 aware of the significant exploration upside, however the acquisition rationale and financial model reflected a long-term production flow from existing wells of 5,000 barrels per day,” he said.
“Since then, we have increased production from the existing wells and accelerated our exploration program which has resulted in today’s announced discovery.
“This highlights the potential for the Wyoming asset to generate long-term production on a scale many multiples greater than our original expectation.”
Millholland told investors the Frontier element of the discovery is seen to cover 51 square miles, with the capacity for up to three horizontal wells per square mile – each initially producing 1,000 – 3,000 barrels per day.
“We plan a phased production program and have already applied for permits covering four horizontal wells,” he highlighted.
“We control the majority of this discovery as it is coincident with our large contiguous lease block. We will start exploiting the discovery this year.”