Surveying, for both the DSP #1 and DSP #2, was completed within the month of March so that all necessary drilling permits can be submitted to the Bureau of Land Management within the next several weeks.
The two initial locations are located within the Northern Section which has been the subject of the company’s interest due to the potential of an existing stratigraphic trap, as based on the Diamond Springs third party geological assessment as well the geosening satellite imagery that was commissioned by LHPT’s other working interest partner.
The Diamond Springs Prospect is composed of three independent but geologically similar prospective locations within the 3300-acre tract with potential reserves estimated at 4.3MM barrels of oil. West of Casper, Wyoming in the Sweetwater Mountains, this prospect is adjacent to both the Wind River Basin and the Casper Arch in Fremont County and is in close proximity to productive gas and oil fields.
The Northwest, North, and West Diamond Springs are shallow drilling prospects, 200ft to 1100ft in depth, with 72 possible drilling sites within the three locations (based on 40-acre spacing). The drilling sites consist of stratigraphic pinch-outs of sands of the Cretaceous, Frontier, Dakota, Lakota, Jurassic, Morrison, and Sundance formations.
Third-party geological assessments suggest that there may be greater potential for further exploration in the deeper formations that may be present within this prospect. The initial focus is to exploit the shallower formations in order to take advantage of reduced investment risk and quicker return on investment, the company said.
