Nitro Petroleum, Inc. announced after the market closed yesterday the petroleum reserves for their Big Horn project in Montana. Nitro maintains a 25% working interest in a 1,600 acre lease at Big Horn. Ramsey Property Management LLC of Oklahoma City, OK, a reservoir engineering firm, was contracted to evaluate the potential reserves. The data compiled by Ramsey showed 93,900 barrels of high gravity crude oil and 236,000 cubic feet of natural through initial calculation indicators.
Drilling regulations allow for ten well drilling programs on the lease. Nitro, according to their President, James Borem, is presently in negotiations with potential Joint Venture partners to begin prospecting a first well. The target for the first well is a reservoir in the Tensleep geology believed to be at 7,300 feet in depth. A nearby well to the east has produced nearly 300,000 barrels of crude oil to date with production still continuing at a rate of 40 barrels a day without further stimulation. The data combined with the facts of the nearby well provides a substantial opportunity for Nitro in the highly competitive market.
Nitro, a company focused the acquisition, exploitation and development of oil and natural gas properties in the United States and Canada, not only retains the working interest in the Big Horn Prospect, but several other locations as well. An update to shareholders was provided on May 17th regarding the enhancement program being performed on the Quinlan #1, Quinlan #2, and Quinlan #3 wells. Nitro is also the operator on the Mason Burns well in Oklahoma.
Last week, Nitro announced that the engineering and economic feasibility study on this well had been completed. Also in the Nitro portfolio is the Ward-McNeil Well in Oklahoma. Nitro is the operator on this well also and provided information regarding the re-work scheduled for the well earlier this month. Nitro has been pushing lately to expand operations in the development of the business strategy to seek out and develop opportunities in the oil and natural gas sectors that represent low risk opportunities.
More information about the recent developments of Nitro and their operations can be found on the corporate website at www.nitropetroleuminc.com.