Comet locks in Colorado rig, expands in Washington State

COMET Ridge says its US subsidiary has secured a rig for a three-well drilling program on the Tow Creek and Bear River projects in Routt County, Colorado.
Comet locks in Colorado rig, expands in Washington State Comet locks in Colorado rig, expands in Washington State Comet locks in Colorado rig, expands in Washington State Comet locks in Colorado rig, expands in Washington State Comet locks in Colorado rig, expands in Washington State

In addition, the company says it has won 51 leases covering over 18,000 acres (7284.3 hectares) in Grays Harbor Basin, in west Washington State.

The company yesterday said Comet Ridge USA has attained Cyclone Drilling Rig 16, which will drill the Coal View Unit 31-4 (CVU 31-4) followed by the Peltier 11-12 on the Bear River Project.

It is expected to move to the first location on or before November 6.

The wells will be followed by CVU 18-14, subject to drilling permits being received from the State and the County.

“These three wells are intended to verify that the drilling, completing and reservoir management techniques the company has researched and developed will result in superior productivity and increased recovery rates,” Comet said.

“Historically there have been some very significant producers on the structure, producing over 400,000 barrels.

“There are also a number of wells that encountered very strong oil flows while being drilled but produced only insignificant volumes when placed on production.”

Comet said it believed the Tow Creek/Bear River projects have an upside reserve objective in excess of 10 million barrels of oil on a 100% basis.

“The potential prize is therefore very significant,” it said.

Comet said there could also be large follow-up opportunities elsewhere in the Rockies in the event of success at Tow Creek and Bear River.

The first well at Tow Creek, CVU 31-4 is designed to test three separate reservoir intervals in the Cretaceous-aged Niobrara Formation on the eastern flank of the Tow Creek anticline.

It will be drilled with a special aerated drilling mud system designed to minimise damage to the fractured reservoir.

CVU 31-4 is targeting gross recoverable oil reserves of 200,000-400,000bbl with upside potential in excess of 500,000bbl.

Comet Ridge is operator of both Tow Creek and Bear River with interests of

37.5% and 33.75%, respectively.

Comet Ridge and partner, Colorado Strike Oil, a wholly-owned subsidiary of Strike Oil, are each paying 50% of the cost of the first two wells, CVU 31-4 and Peltier 11-12. Thereafter the companies will pay their working interest share.

Meanwhile, the company today said its wholly-owned US subsidiary St Helens Energy last week successfully bid on 51 leases covering 18,159 acres in a Washington State oil and gas lease sale.

Comet Ridge said the leases are largely contiguous with the 420,000 acres it has under lease in the Grays Harbor Basin, a proven oil and gas-bearing basin.

The average acquisition cost of all tracts bid on was $US6 per acre. The leases have seven-year terms and a royalty rate of 12.5%, the company said.

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