Forest Gate Energy Secures Exclusive Option to Acquire Additional 37,264 Net
Acres in Utah
Shares outstanding: 25 Million Symbol & exchange: FGE-V
This land package covers a vast area with significant exploration potential, including at least 8 drilling prospective areas for oil and gas. The prospectivity has been determined on the basis of nearby producing field analogs, adjacent well discoveries and shows, 2D and 3D seismic data of good quality, surface geological mapping and the integration of the complete database into a geological framework.
This option acreage contains shallow reservoirs, which are thick, good porosity sandstones of the Cretaceous and Jurassic age, which occur in a variety of trapping scenarios in a depth range of 3,000 to 4,000 feet. They occur as lenses draping over structural anticlines, as eolian (sand dunes) and as wedges tapering up against faults or salt walls. Multiple targets can be intersected with a single well location. The identified prospects offer low-risk and low-cost opportunities for the discovery of large reserves of oil.
There are also several deeper potential plays at depths of 5,000 to 16,000 feet. These include a Granite Wash play (eroded granite, which has been redeposited as a sedimentary unit), several carbonates (reef, shelf, limestone), algal mounds, and an over-pressured fractured shale. These are older formations, including Mississippian, and all have productive analogs. These concepts represent somewhat higher risk than the shallower tier but offer the potential of large reserves, particularly gas.
Completion of this transaction would bring Forest Gate's total land holding in the area to 256,505 gross acres and 69,419 net acres.
"Recent drilling activity by Delta Oil & Gas and
About
FORWARD-LOOKING STATEMENTS
Certain statements regarding
Such factors include, but are not limited to: the impact of general economic conditions in
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release. This transaction is subject to TSX Venture Exchange Approval.
For further information: Robert Kramberger, V-P, Investor Relations, 1-866-666-3040, [email protected]; www.forestgate.ca
Share this article