World’s Biggest Oil Reserves

Montana is in position to become one of the largest oil and gas production states in the USA. In 1995 the U.S. Geological survey assessment for Montana was placed a 51 million barrels of oil. Later in April 2008 the U.S. Geological Survey increased its estimation by a 25-fold amount up to 4.3 billion barrels and as exploration continues the numbers will also. The Bakken to the East and the Black Foot Indian finds to the West are proven and now well know additional areas will come on line as well. Some are suggesting the states potential reserves are larger than Saudi Arabia, Iraq and Kuwait. Time will tell.

Geography

Named for  the Lewis & Clark expedition which transversed it twice, once in 1805 and again in 1806. In 1872 its boundaries were redefined, taking on, for the most part, its existing appearance. Covering over 3,000 square miles, it occupies sections of such famous land forms & features as the Rocky Mountain Front, the Continental Divide, the Big Belt Mountains, the Over-thrust Region and the Missouri River. Rich in resources and scenic beauty, the County has attracted the attention of people from the earliest known times of North American human occupation to the present.

Big Horn Oil and Gas The Golden Eagle Prospect

The Golden Eagle Prospect is located approximately six miles west of the town of Augusta, Lewis & Clark County, Montana.

Regional Geology:

Located in the mid west central part of Montana the geology is well known. In this region the Montana Telegraph Creek Formation and the Eagle formation with its three members, the Virgelle, the middle Coal unit and the upper transitional unit are well documented. Above the Eagle are the Two Medicine formation, Horsethief Sandstone and the St Mary River formation which is well documented as well.

Local Hydrocarbon & Porosity:

Wells drilled in all quadrants within ten miles of the Golden Eagle Prospect area indicate hydrocarbons and/or porosity shows in the Virgelle a key target zone for the Golden Eagle Prospect. The Standolin #1 located there miles to the southwest of the proposed drill site has a 130 of to total Virgelle sand which had 30 feet of visible porosity.

Eight miles north of the prospect the Montana Power #8-15-21-7 State drilled in 1974, penetrated 154 feet of Virgelle sand with 44 feet showing good porosity.

Eight miles due east of the prospect, the Anaconda #1 Leiser well was re-entered by Mosbacher in 1981. The Witt #14-1 well found 86 feet of total Virgelle sand of which 60 feet had porosity of 10% or more.

Logs from the Sandy Butte #1 State, approximately one mile east of the Golden Eagle Prospect and the #1-9 J.B. Long further complete the sub surface geological structures. Both wells were drilled to test trusted

Paleozoic carbonates three decades ago. Although at depth these wells were found to be uneconomic, at 1980 $10.00 a barrel prices, they encountered excellent oil shows in the Cretaceous Cone and the Virgelle units.

The Cone was acid-washed and swabbed 50 bbl of light green 40 gravity crude oil over a three day period in belated attempt to check the Virgelle after the unit had been exposed to drilling fluids for several months and was unsuccessful because of packer failure. Even with all the engineering problems, the Sandy Butte well did encounter several exciting hydrocarbon shows which have important bearing on the Golden Eagle prospect.

The Horsethief Sandstone was repeated by thrusting at a depth of 580 feet. The two sand units were about 40 foot in thickness and contained hydrocarbons. The top of the Eagle formation was penetrated at 3066 feet. The Virgelle Sandstone came in at 3472 feet with a total of 111 feet of the 146 feet of the Vergelle having excellent oil and gas shows.

While the Golden Eagle Prospect may still need to be considered as a wildcat it has many of the benefit of an infield project. Compared with the wells drilled in the area over three decades earlier and armed with better science, better technology, better drilling skills and much better product prices, this relatively shallow easily accessible prospect very is attractive.

Following are shots of the Golden Eagle landscape.