Neighboring players in the region include Rosetta Resources Inc., Newfield Exploration Co., Anschutz Exploration Co. and a dozen smaller U.S. independents and Canadian junior oils. The company is taking advantage of acreage positions across the state from the North Dakota-Montana Bakken play in the Williston Basin, all the way to the new Alberta Basin exploration. Teton County is seen as an analog to the existing Devonian shale oil production.
Play depths range from 4,000 to 7,500 feet in the most active exploration region, and estimates of the total resource in place vary from 10 to 15 million barrels of oil equivalent per square mile.
Like its eastern counterpart, the Alberta Basin Bakken has attractive shale oil features. It also offers multiple prospective zones, including the Nisku, Bakken-Three Forks and Lodgepole formations, as well as other secondary targets. There is good pipeline transportation in the area, due to in part the presence of the once prolific Cut Bank oil and gas field, in addition to Canadian production.
Cress Oil plans to drill the initial 6-9 Bakken wells during the next 24-36 months, which will represent the start of a continuous, multi-rig development program for the company. In conjunction with a major oil company, Cress will develop the large acreage region over a period of the next 5 years.
Cress plans to evaluate the western Bakken play based on vertical test or pilot programs. No meaningful production picture will emerge until the wells have been horizontally drilled and fractured.
“We are going to execute on our assessment plans, test multiple formations and will not plan to discuss results until we have a better understanding of our acreage and its potential”, stated Earl Moore, board member and President of Drilling Services.
Cress also disclosed recently that it was purchasing 16,000 acres in Rossevelt County, located in NE Montana.
A U.S. Geological Survey reports have found that the Bakken Shale is one of the largest and richest continuous oil accumulations in the United States. Because the Bakken shale has moved up into Canada, specifically Alberta, Canada, Cress Oil intends to explore and develop deep into the southern Alberta basin of Montana as well. There is an estimated of 6-24 billion barrels of oil to be recovered in the Bakken formation.