COPL confirms Wyoming oil discovery

Canadian Overseas Petroleum Ltd. (COPL) confirmed a conventional light oil discovery in Converse and Natrona counties, Wyoming.

Barron Flats Federal (Deep) Unit exploration well BFU 14-30VF, drilled in August 2021, intersected 140 ft of net reservoir sand in three Frontier 1 formation sands, a single Frontier 2 sand, and Lower Cretaceous Dakota formation sands.

Light oil (40° API) was recovered from the lowermost Frontier 1 and the underlaying Frontier 2 sand on perforation. All four Frontier sands experienced significant formation damage from the invasion of drilling fluids and cement through drilling, casing, and remedial cementing operations. Indicative flow rates were not achieved as the company believed further reservoir stimulation through hydraulic fracturing to be high risk. Reservoir characteristics which caused the issues have been identified and are being incorporated into well planning for exploitation drilling of the Frontier reservoirs.

Frontier will cover an area of about 51 sq mi with capacity of up to three horizontal wells per sq mi, each initially producing 1,000-3,000 b/d. A phased production program is planned with permits already applied covering four horizontal wells.

The Dakota sand, the deepest or lowermost oil-bearing horizon, was completed and placed on production recently to comply with the Barron Flats Federal (Deep) Exploration Unit terms. The well is producing 100-120 b/d and COPL estimates 1.5-1.9 billion bbl total oil in place (OIP), of which 1.275-1.64 billion bbl OIP underlays COPL lands.

Oil production at the Shannon Unit is ahead of original 2,000 b/d expectations which will increase once high working pressure issues are resolved. In addition, recent simulations have indicted modifications to injection gas-NGL mix to maximize sweep efficiency and reduce injection costs, the company said.

COPL's current working interest on its operated leasehold block ranges from 55-85%.