Summit Resources Limited Announces Significant Oil Discovery in North Dakota's Lodgepole Play

Strategic Insights -

Summit Resources Limited has made a significant oil discovery on the Lodgepole oil play in North Dakota, with its second test well, Armstrong/Summit Hondl #15-1, encountering a carbonate reservoir with excellent reservoir pressures. The well tested gas and oil on drill stem test, and was drilled 80 feet into the oil-bearing reef, indicating a substantial oil column. This discovery represents a major extension to the known productive area on this prolific new oil play, and has significant implications for the company's operations in the region.

Key Takeaways:

  • Summit Resources Limited has made a significant oil discovery on the Lodgepole oil play in North Dakota, with its second test well, Armstrong/Summit Hondl #15-1, encountering a carbonate reservoir with excellent reservoir pressures.
  • The well tested gas and oil on drill stem test, and was drilled 80 feet into the oil-bearing reef, indicating a substantial oil column.
  • The discovery represents a major extension to the known productive area on this prolific new oil play, and has significant implications for the company's operations in the region.
  • The well was cased as a new pool discovery, and an election was made not to penetrate the oil water contact in the reservoir to ensure a successful cement job.
  • Subsequent drilling on this reef will determine the total thickness of the oil column, which is expected to be substantial.
  • Summit Resources Limited holds a 20% working interest in the Hondl discovery well, with Columbia Gas Development Corporation holding 50% and Jordan Oil and Gas L.P., The Armstrong Corporation, and T. Keith Marks holding the remaining 30%.
  • The discovery is a significant milestone for Summit Resources Limited, which is a Canadian corporation engaged in oil and gas exploration, development, acquisitions, production, and marketing in western Canada and the United States.
  • The company's shares are listed on the Toronto Stock Exchange and The Alberta Stock Exchange, with trading symbol "SUI".

Statistics:

  • 80 feet: the depth at which the well was drilled into the oil-bearing reef
  • 20%: the working interest held by Summit Resources Limited in the Hondl discovery well
  • 50%: the working interest held by Columbia Gas Development Corporation in the Hondl discovery well
  • 30%: the working interest held by Jordan Oil and Gas L.P., The Armstrong Corporation, and T. Keith Marks in the Hondl discovery well
  • July 4, 1995: the date on which the announcement was made

Sources:

  • Summit Resources Limited press release, dated July 4, 1995
  • Business Wire article, dated July 4, 1995