The Govt Kaehne #9-29 is considered to be a low risk conventional well targeting production of light sweet crude oil from the Sandstone reservoirs of the Dakota Formation (Lower Cretaceous Age) at a depth of ~6,200’. The directionally drilled well will penetrate the Muddy Formation as a secondary target at a depth of~6,000’.This well will target high quality, oil saturated reservoir, in a structurally high position relative to offset wells. Offset well initial production (IP) rates are prolific (refer map below) and this new well could add significantly to the Company’s existing 530 boepd production. The Company holds 100% ownership in all the PRB leases with a12.5% mineral interest royalty burden delivering an 87.5% net revenue interest to Eon.The estimated dry hole cost of the well is $1.2M. The well location has good access for transportation and is near the town of Gillette, a major oil service center for the PRB.
Agreed hussman..This does look promising and I recon although difficult at times patients here may well be rewarded if the above info in on the money..
