Project Profile
Location: Iron County, Utah, USA
Reserves: 1,201 Million Barrels of Oil
Area: 55,477 acres
Start-up Year: 01.08.15
The Parowan Project is located in Iron County, Utah, approximately 110 miles south of Wolverine Gas and Oil’s Covenant Oil Field, which has produced 3.1 million barrels of oil in Utah from structures and reservoir horizons. The Parowan Prospect lies on deep sandstone and carbonate horizons extending. This offers thick reservoir units with the potential for large reserves of hydrocarbons. According to a resource evaluation report it is expected that the oil will have an API gravity ranging from 26 to 40 degrees.
In 2008, Delta Petroleum drilled a test well about 8 miles east of the Parowan Prospect, and favorable indications for oil were obtained. Virtus Oil and Gas Corporation purchased the mineral rights to drill for oil in the Parowan Prospect in October 2013. Virtus Oil and Gas has agreed to drill a 12,000 foot deep test well to evaluate the Navajo, Kaibab, and Permian Queantoweap Sandstone. Test well drilling is tentatively scheduled to commence by September 2015 at an estimated cost of US$2.5 million to drill, complete and test.
Virtus Oil and Gas Corporation (VOIL) purchased 47 miles of 2D seismic data in the Parowan Project which had been reprocessed with advanced processing software. By applying Prestack Time Migration, the resolution of the data was increased significantly while also imaging of the prospects was improved.
Virtus is in the process of establishing its Federal Unit, which covers approximately 25,000 net acres within the Parowan Prospect. Federal Units allow operators such as Virtus the ability to explore large acreage blocks, operate the area as a single leasehold, and extend lease terms on the acreage for additional five years. The Parowan Federal Unit will have a single well drilling commitment within six months of the unit being approved.
Operators:
Virtus Oil and Gas Corporation: Operator with 100% interest
Contractors:
Energy Drilling LLC: Drilling contract to drill the Virtus Lone Pine 34-11-5 Well. Energy Drilling will initiate operations this summer with plans to reach total depth on the 7,000 foot well on or before July 31, 2015. They will be utilizing Energy Drilling\'s Rig 8 for this particular Test Well. An additional 12 to 15 days will be needed to complete the well after reaching total depth. The time it takes to complete the well is dependent on results of the cuttings and potential oil shows from the Jurassic-age zones.