Archive for the ‘Western Standard Energy Corp. WSEG’ Category

Western Standard Energy Corp. (WSEG.OB) Signs Agreement with East Dickenson Oil and Gas

Tuesday, November 11th, 2008

Western Standard Energy Corp. is an independent oil and gas exploration company focused on providing domestic energy resources for a secure America. By teaming with partners and third-party service companies that are willing to incur the majority of costs and work associated with the exploration and drilling process, Western Standard is able to retain a lean corporate structure that favors increased return on investment.

One of those partnerships is the newly signed agreement with East Dickenson Oil and Gas Co. The agreement covers a package of 10 State of North Dakota oil & gas exploration leases in and around Dickinson, North Dakota. The new leases effectively add around 750 net acres to the company’s exploration assets. All the Leases have a 1/8 royalty to the State of North Dakota, with the exception of two of the Leases, which have a 1/6 royalty.

The U.S. Energy Information Administration projects world consumption of oil to increase to 98.3 million barrels per day in 2015 and 118 million barrels per day in 2030. This would require a more than 35% increase in world oil production by 2030. North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil, according to a report from the U.S. Geological Survey.

Dan Bauer, President and CEO of Western Standard Energy stated, “With this recent acquisition Western Standard now has 18 identified and high-graded Lodgepole Reef prospects in its portfolio of exploration assets. This demonstrates our continued commitment to exploration in North Dakota and in Montana.”

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Tim Turner is New VP at Western Standard Energy Corp. (WSEG.OB)

Wednesday, September 24th, 2008

Western Standard Energy Corp., (OTCBB: WSEG) has hired Tim Turner as vice-president of its Land division. Starting at Exxon in 1980, Turner’s career spans 28 years through upstream oil and gas and business consulting services in Texas, throughout the United States, and internationally. He worked for Exxon Company, in New Orleans, La., and for Phillips Petroleum in Houston, Texas.

For the last 13 years, Turner, a certified Landman, has led the oil industry-consulting firm, Tim Turner & Associates, LLC. Clients there include Gazprom, Pemex, PDVSA and Saudi Aramco, as well as other major, independent and international oil and gas producers.

“We plan to expand the business through joint venture partnerships, developing our vast portfolio of exploration assets in Montana and North Dakota, and through the acquisition of producing assets,” said Dan Bauer, Western Standard president and CEO. “Tim’s knowledge and experience on the business side will prove to be invaluable in that effort. We have been working with Tim for several weeks, and are excited to have him as an integral part of our exceptional management team.”

Turner graduated from the University of Texas at Austin, with a bachelor’s degree in Business Administration, Petroleum Land Management. He is a former member of the American Petroleum Institute, Wetlands Working Group; a board member of the American Association of Petroleum Landmen; a member of the Texas Independent Producers and Royalty Owners Association; and a member of the Texas Oil and Gas Association.

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Western Standard Energy Corp. (WSEG.OB): Leading the way on the Bakken Formation

Thursday, September 11th, 2008

Western Standard Energy (WSEG) is an exploration-stage oil firm focused on extracting crude oil and natural gas from the Bakken Formation that runs through Montana, North Dakota and Canada. The area is believed to hold some of the largest reserves of crude oil in the North America, after Alaska’s Prudhoe Bay and the oilfields of West Texas. In fact, it is speculated that there are potentially 503 billion barrels of oil on 25,000 square miles of the Bakken Formation. That amount surpasses Saudi Arabia’s reserves by five times and is believed to be over 200 times the total known reserves in the U.S.

Western Standard is currently engaged in a natural gas project in Montana and an oil project in North Dakota. The combined value of the two projects is estimated to be almost $2.9 billion. In North Dakota, the company has seven prospects in an area known as the Lodgepole Reef. Conoco Phillips, one of the largest U.S. oil producers, is currently drilling in the Lodgepole Reef, and reportedly claims that the area is one of its most economically viable. It is estimated that Conoco Phillips will eventually be able to extract 2,000 barrels a day from the region.

In north-central Montana, Western Standard has projects in what is called the Starbuck East Project. Some estimates say there are 6.19 trillion cubic feet of natural gas available in this region. Western Standard may have access to almost 220 billion cubic feet of this gas, which would be worth $1.1 billion to the company. To expand its expertise and management credibility, North Dakota-based Western Standard announced in July it hired a key executive from Chevron and another from Conoco.

Shares of Western Standard closed Wednesday at 17.5 cents. The shares of this $25-million company have traded between 16 cents and 88 cents over the past 52 weeks. Western Standard has the potential to realize $3 billion worth of assets from its ventures on the Bakken Formation. Of note to investors, Chief Executive Officer Dan Bauer owns nearly 19 million of his company’s shares.

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RedChip Featured Company: Western Standard Energy Corp. (WSEG.OB)

Thursday, September 4th, 2008

Western Standard Energy Corp. (WSEG) is an independent oil and gas exploration company working toward providing domestic energy resources to the United States. The company is concentrating its exploration efforts to properties within the Bakken Formation region. Western Standard is currently working on two oil and natural gas projects: Starbuck East Prospect in Montana and Lodgepole Reef Prospect in North Dakota.

The U.S. Geological Survey (USGS) performed an initial assessment of the Bakken Formation in 1995. The USGS revisited the area and release its latest findings in April, 2008. New analysis indicates that the Bakken Formation may represent one of the largest domestic oil and gas opportunities in U.S. history. The USGS report estimates that the U.S. portion of the Bakken represents 3 trillion cubic feet (TCF) of natural gas and up to 4.3 billion barrels of recoverable oil, which is the largest continuous type of oil accumulation the USGS has ever assessed.

Western Standard currently owns a 50% share in the 42,000 acre Starbuck East Prospect that contains two primary target sites. The Eagle site is found at a depth of 1100 feet and represents 127.5 billion cubic feet of reserve. The Philips site is found at a depth of 2300 feet and represents about 92.4 billion cubic feet of reserve. The total valuation of the prospect exceeds $2.2 billion, based upon a standard calculation of $10 per MCF. Western Standard could recognize up to $1.1 billion in returns on the site.

Western Standard owns a 100% working interest (WI) and 80% net revenue interest (NRI) until payout in seven Lodgepole Reef Prospects. Following payout of a 20% royalty to the land owner, the company will own an 80% WI and 64% NRI on the prospects. Estimates put the potential site reserves at 4 million barrels of oil per prospect. Based on a rate of $100 per barrel, Western Standard’s 64% NI could recognize up to $1.79 billion in returns.

As the state of international oil and fuel resources continue to be in question, Western Standard is already addressing how it can provide domestic resources to consumers. With its focus on the Bakken Formation, Western Standard could soon recognize the rewards of its effort.

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Western Standard Energy Corp. (WSEG.OB) Forms Partnerships to Bank on Promising Bakken Formation

Tuesday, July 22nd, 2008

Western Standard Energy Corp., (OTCBB: WSEG) is an independent oil and gas exploration company with properties scattered across Montana and North Dakota. According to the U.S. Geological Survey, the two states have an estimated 3.0 to 4.3 billion barrels of untapped, recoverable oil in the Bakken Formation.

Western Standard today announced it intends to engage in a drilling partnership with Oil for America LLC (OFA) to fund operations for one Lodgepole well and a second Lodgepole-Bakken well, both in North Dakota.

The company also announced it will form a new, wholly-owned subsidiary, receiving an overriding 3 percent royalty for the lease assignments. As part of the partnership, Western Standard will invest half of the “partnership” units for $3.2 million, alongside third-party interests, for an aggregate investment of $6.4 million.

According to OFA, the Lodgepole Reef play was established in 1993 when ConocoPhillips experienced an initial production rate of around 400 barrels of oil per day. For Western Standard, drilling operations of the Lodgepole target are expected to cost $1.6 million. Per the partnership, operations for the Bakken will incur an additional $3.2 million, for an aggregate of $4.8 million for one Lodegepole-Bakken well.

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Western Standard Energy Corp. (WSEG.OB) Announces $15 Million Equity Investment

Thursday, May 8th, 2008

Western Standard Energy Corp., (WSEG.OB), an oil and gas exploration company, recently announced the signing of a $15 million Stock Issuance Agreement with Infinity Energy Investments to finance ongoing exploration and production strategies. Western Standard aims to secure and develop a portfolio of oil and gas properties throughout the central and western portions of the U.S.

This agreement provides capital to Western Standard Energy Corp., rather than incurring new debt and thereby minimizing the immediate dilution effect that a large investment would bring. The investment funds will be paid in increments of $250,000 upon request by the company. This financing will support the further development of the company’s Lodgepole reef prospects in North Dakota and fund operations of the Federal 1-19 discovery well in Valley County, Montana.

The Energy Department’s Energy Information Administration now predicts that average oil prices will reach $110 a barrel in 2008, up $9 from last month’s forecast. Western Standard Energy Corp. will benefit from the timing of this agreement to prove commercial quantities of oil or gas from the Bakken formation in Montana and North Dakota, which offer excellent potential profit margins.

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Western Standard Energy Corp. (WSEG.OB) to Acquire Third Prospect in Promising Bakken Formation

Friday, April 18th, 2008

Western Standard Energy Corp. (OTCBB: WSEG) today announced the signing of a Memorandum of Intent to acquire the Rocheford 27-1 Lodgepole Reef Prospect in Stark County, N.D. The oil and gas exploration company recruited independent, third-party geologist Jamil Azad to provide an estimate on the potential of the lease.

It was Azad’s opinion that the geochemically high-graded Rocheford 27-1 prospect has the potential to produce commercial quantities of oil. Additionally, according to the United States Geological Survey (USGS), North Dakota and Montana have approximately 3 to 4.3 billion barrels of undiscovered, “technically recoverable” oil in the Bakken Formation.

“We are pleased to have gained another opportunity to expand our operations in the Bakken Formation,” Dan Bauer, president and CEO of Western Standard Energy stated in the press release. “Coupling the geological report and that from the USGS, we believe this prospect can be an integral part of our expansion and development within the region. We will continue to seek out new opportunities to broaden our interests in this area as we believe it is key to our growing value.”

This prospect would mark the company’s seventh Lodgepole Reef property located in North Dakota’s prolific Bakken Formation, and the third area that Western Standard maintains in the Bakken Formation. The company’s Starbuck East and State Lease Prospects in Montana are also located on the Bakken Formation.

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