Western Divestments has been retained by Petro One Energy Corp. (a wholly owned subsidiary of Goldstrike Resources Ltd.) to market the company’s oil and gas asset in the Milton area of Southwest Saskatchewan (Map 1). The Milton Asset consists of PNG Rights, wells and associated surface facilities.
- Low risk, Viking light oil (30 API), development potential on major resource play fairway
- Proven production from Viking Formation with offsetting additional prospective horizons
- Property is under Saskatchewan jurisdiction
- Recent reserve evaluation completed on package
- Significant low risk development drilling opportunity base including:
- 5 unbooked horizontal locations
- Seismically defined deeper targets
- Significant body of technical work completed on the property including detailed reservoir characterization, seismic interpretation and mapping
Location and Asset Summary
The Milton Viking property is located on the western extent of the Dodsland Viking formation producing fairway approximately 40 kilometers west of Kindersley Saskatchewan (Twp 30 Rge 27W3M) (Map 2). The property consists of a combination of Crown and Freehold leases and includes 5 suspended, vertical oil wells and one suspended horizontal well. The wells were drilled and completed by Petro One Energy Corp. between 2011 and 2014. Goldstrike Resources Ltd. acquired Petro One in 2015 and at that time decided to suspend operations in the Milton area to focus on other corporate objectives. The property is readily re-startable and since initially suspending the property Petro One has restarted production twice in 2017 for testing purposes (See Restart History below).
RECENT OFFSET ACTIVITYLAND
Eight parcels were purchased at Crown PNG disposition in 2017 per the schedule below Gear Teine and Turnstone Energy all purchased land in the vicinity. Most leases were for PNG below Viking to Basement suggesting posting were requested fore either Bakken or Success targets. The 2017 PNG Lease postings are shown on map 4.
In 2017 industry completed 27 wells in the Milton area primarily targeting Success/Mannville and Bakken. The 2017 well locations are illustrated on Map 4.
PRODUCING AND PROSPECTIVE HORIZONS
Prior to the Goldstrike merger a strong technical team managed by Petro One completed a significant body of technical work on the property including the definition of prospective development targets based on geologic mapping and seismic interpretation The company defined three horizons of interest in the Milton Area: the Upper Cretaceous Viking Formation, the Lower Mannville/Success Formation and the Lower Mississippian Bakken Formation as prospective on the Petro One lands. The group also recognized that the Devonian Birdbear as an additional potential zone however no analysis was completed on the zone. Similarly, shallow gas potential was not included as part of the team’s mandate.
The team conducted detailed technical evaluations of the target horizons in 2010. In the Milton area to date the company has conducted regional and detailed geologic analysis of the Viking Formation in addition to a geophysical investigation of the Success and Bakken horizons supported by detailed geologic interpretation. The stratigraphic position of the target horizons worked by the Petro One team are shown in Figure 1.