Legend Oil and Gas, which has a considerable production footprint in Canada spanning some of the best hydrocarbon targets across Alberta and B.C., as well as some royalty interests in unconventional oil shale acreage in North Dakota’s Bakken/Three Forks, announced the commencement of the latest round of drilling today in a multi-well program on their rapidly developing 1,040-acre Piqua Project in Kansas.
The focus of the current program is on the lightly-drilled, 320-acre Patrick Collins lease (100% WI, 87.5% NRI), which saw four successful wells put in to the Squirrel reservoir zone in August and a subsequent delineation of five new permit targets in November on strong results and the robustness of operationally gathered intel. The four initial wells into the Squirrel reservoir from August are doing quite well, with higher than anticipated average production thus far over the first four months, running roughly 2 BOPD a piece. The thicknesses of the Squirrel reservoir in two of the wells handsomely exceeds production zones on adjacent leases and LOGL is rather bullish as they storm into this latest batch of drilling in their multi-well Piqua program.
Today’s news comes fast on the heels of the recent (Dec 3) acquisition of six essentially contiguous leases in the McCune oil field (also in Kansas), a partially developed project with a spate of shallow oil and water injection wells currently running roughly 8 BOPD. This recent acquisition shows LOGL’s tactical mastery of the space quite plainly, having recently (Dec 5) sold the Wildmere Unit interest (running around 25 BOPD) out of their Canadian assets for just under $1.84M, or some $78.2k per flowing barrel and picking up the high-potential McCune at a value of approximately $50k per flowing barrel. This is the first of several upcoming sales from LOGL’s Canadian package as the company shifts focus to their higher return U.S. portfolio.
President of LOGL, Marshall Diamond-Goldberg, emphasized the success of recent drilling on the Collins lease and explained that additional upgrades to their production battery have resulted in significantly improved fluid handling capacity, making the decision to drill more Squirrel wells an easy one indeed. Readily grabbed additional production will complement enhancements being made to the water flooding program at Piqua nicely as well, resulting in an overall improvement to oil recovery metrics, including from the company’s other leases.
Diamond-Goldberg cited the higher than expected (from initial due diligence) production at the company’s new McCune leases as a strong secondary in the total Kansas equation and further explained how LOGL is currently analyzing McCune targets while the Piqua work progresses. The Piqua drilling is anticipated to be done in approximately one to two days per well with the casing jobs done as soon as the requisite services are available. Markets should get a look at the data coming out of this latest round of drilling at Piqua relatively soon and the added McCune potential should have investors really digging LOGL’s emerging Kansas position.
To get a closer look at Legend Oil and Gas Ltd., head over to www.LegendOilAndGas.com
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