The Bear Creek #1 will be drilled to a total vertical depth of approximately 8,457 feet to test a number of deep conventional zones with significant potential as well as to gain valuable information on the quality and potential of the Niobrara Shale on the project acreage. The Company holds a 100% working interest in the project and expects drilling time to be approximately 15 days. As a result of the commencement of drilling, we have complied with our drilling obligations under the farmout agreement with Anadarko and, thus, retain our rights to the balance of the farmout acreage.
The Anschutz Ranch #1 well, which is located about 3/4ths of a mile southwest of the Bear Creek #1 location, has produced approximately 970,000 barrels of oil out of the Sundance on a subsurface structure that shows similar traits to the Bear Creek #1 target.
“We are pleased to be getting this project underway and look forward to a successful effort,” said Randy M. Griffin, CEO of Armada Oil, Inc.
The Company also announced that it has sold its remaining acreage position in Oklahoma in order to focus on its Kansas and Wyoming projects as well as to continue to pursue additional producing property acquisitions.