Project Profile
Value: Undisclosed
Location: Bakken and Three Forks, Divide County, North Dakota, USA
Area: 1,066.5 gross acres and 135.056 net acres
Estimated recoverable reserves: 300 and 800 thousand barrels of light sweet crude
Drilling Depth: 3,000 feet
The Bakken and Three Forks rights acquired include 1,066.5 gross acres and 135.056 net acres in Divide County approximately 20 miles from the Crosby pool. This purchase is a good start and the company intends to build upon the acquisition to position JayHawk for future drilling in both the Bakken Formation, as well as the separate underlying Three Forks shale. These zones are currently being thought of as separate reservoirs based upon the independent production being taken from the Bakken and Three Forks in wells on the same drilling spacing unit (DSU). Hess, Continental and Whiting have all drilled wells tapping the Three Forks and Bakken separately on single DSU\'s and have produced oil in quantities consistent with reservoir separation.
Based upon corporate assessments by EOG, Whiting, Oasis and others, recoverable reserves are expected to be between 300 and 800 thousand barrels of light sweet crude separately in the Bakken and Three Forks, making both targets economically attractive despite high drilling and completion costs. In Divide County, the drilling depths to the target are some 3,000 feet shallower than in areas to the south, thus drilling costs are somewhat reduced from the average of US$5-$7 million as reported by EOG, Brigham and Whiting in their presentation materials.
JayHawk will initially focus its efforts on acquisition of additional mineral land in the Bakken/Three Forks with an eye toward possible drilling in the fourth quarter of 2012. Additional funding will be required in order to carry out this portion of the company\'s business plan.
Operators:
JayHawk Energy, Inc.: Operator with 100% interest