Independent oil and gas exploration and production company Basic Earth Science Systems Inc. recently updated shareholders on its Roscoe 2H-8 well in the Banks Prospect in eastern McKenzie County, N.D. The company announced the well went into production in early May 2009, testing at a rate of 543 barrels of oil, 1,185 thousand cubic feet of gas, and 122 barrels of water per day.
The well currently flows at a rate of 300 barrels of oil a day, and is drilled and operated by Basic Earthâ€™s partner, Panther Energy Company LLC, out of Tulsa, Oklahoma. Basic Earth holds a 6.5 percent interest in the well. President of Basic Earth, Ray Singleton said the company is pleased with the completion of the well and hopes that an increase in oil prices will allow the company to commence additional drilling in the area.
In August 2008, Basic Earth signed an agreement with Panther, which gave Panther the rights to Basic Earthâ€™s 20% interest in the Banks Prospect. Per the agreement, Panther was required to drill two horizontal wells and carry Basic Earth for its cost in those wells. Basic Earth is now required to pay its share of the cost for future wells drilled in the Bakken formation as part of the Banks Prospect.
Basic Earth is focused on growth through the discovery of new oil sources and natural gas reserves, acquiring properties it considers significant to its mission with the potential to boost cash flow. The company currently has interests in the North Dakota and Montana portions of the Williston basin, the Denver-Julesburg basin of Colorado, the southern portions of Texas, and on-shore portions of the Gulf Coast.