Under the terms of the letter of intent, Western Standard has a 100% working interest, subject only to landowner’s royalties and a 20% back in working interest to Oil For America (OFA), after payout.
Depth of the Bakken objective, within the Williston Basin, is approximately 11,000 feet, with drilling operations that include horizontal lateral extensions of 4,000 to 8,000 feet at an estimated cost between $4.5 million and $5 million.
Successful Bakken wells in the area have resulted in production rates of approximately 300 to 800 barrels of oil per day, with an estimated ultimate recovery of between 300,000-800,000 barrels of oil over the life of each well, and an expected life span of around 10 years.
