The Benrude Prospect is located in Roosevelt County, Montana in the Williston Basin. The primary objective is the Nisku Formation at a depth of 7600 feet. Secondary objectives include the Bakken and Three Forks formations immediately overlying the Nisku. The initial location is a development well location directly offsetting and up-dip of the Nisku Benrude Field discovery well, which produced 269,000 barrels of oil from a location on the flanks of the Benrude structure. A second well subsequently produced another 30,000 barrels of oil from an even lower structural position.
The Benrude Field is typical of other Nisku fields in the area, where underlying differential salt dissolution features created localized structural highs at the Nisku level. Average reserves in the surrounding fields are 1 MMBO per well. Production should be aided by excellent reservoir quality and a strong water drive.
Based on a 2D seismic interpretation, a preliminary location in the SW/4 NE/4 Section 34, Township 31N Range 47E is projected to be about 16 feet higher on structure to the discovery well and to have potential recoverable reserves of up to 500,000 barrels of oil.
American Eagle is finalizing the permitting of a 3D seismic survey which will be used to determine an optimal drillsite location.
The Bakken and Three Forks Formations represent important secondary horizontal objectives that will be further evaluated as the initial test well is drilled. The Bakken at Benrude falls within the USGS Northwest Assessment Area of Bakken potential.
Drilling is anticipated in the summer of 2012, following our interpretation of the planned 3D seismic survey.