Black Stallion Oil & Gas Engages Sproule to Evaluate Woodrow Prospect and Advise on Four-Phase Work Program
LOS ANGELES, Sept. 21, 2015 (GLOBE NEWSWIRE) -- Black Stallion Oil & Gas, Inc. (OTCQB:BLKG) (herein after "Black Stallion", "we", "our" and/or "the Company") is pleased to announce having engaged Calgary-based Sproule Associates Limited ("Sproule") in connection with the Company commencing a four-phase work program on its 12,233-acre Woodrow Prospect in northwest Montana, within the Alberta Basin Bakken fairway, due west of the Williston Basin.
Black Stallion entered into the Master Services Consulting Agreement ("the agreement") with Sproule on September 16, 2015, enabling Sproule's team of experienced geologists, geophysicists, petrophysicists and engineers to begin work on the program immediately. The agreement includes estimation of prospective resources within the Woodrow Prospect, and technical advisory services relating to the Company's four-phase work program.
The Company expects Phase I of the four-phase work program to be completed in the next month.
Black Stallion's CEO, George Drazenovic, commented:
"We selected Sproule for this evaluation and advisory capacity because they have established themselves as a respected petroleum consulting firm with highly competent staff and an excellent reputation with the financial community. While Black Stallion's technical team is encouraged by its own evaluation and review of the available data, as we start our work program, our shareholders can now look forward to seeing the results of another independent evaluation of the Woodrow Prospect's potential within these coming weeks."
Phase III: Drilling and Completion Recommendations (finalizing plans for drilling & completions)
Phase IV: Drilling and Completion of the Well
In particular, Phase I will focus on the identification of the most prospective reservoir zones and anticipated reservoir parameters, all hydrocarbon play elements, significant test results in the study area and nearby offsetting acreage, and recommendations for more detailed analysis to be performed in Phase II.
Details on the work program and Sproule's involvement are provided further below.
ABOUT SPROULE INTERNATIONAL LIMITED
Sproule Associates specialize in reservoir management, including economic evaluations of oil, natural gas, and by-product reserves, as well as resource assessments, field optimization, development plans and project management.
Clients include North American and international oil and gas companies, financial organizations, and government agencies, which utilize Sproule reports for investment analysis, technical and financial planning, mergers, acquisitions and divestitures, securities reporting, debt financing, estate settlements, insurance claims, and litigation.
Sproule's evaluations are highly respected by major oil companies, independents, NOCs, international banking institutions and securities commissions.
DETAILS OF WORK PROGRAM AND SPROULE'S INVOLVEMENT
Phase I: Initial Regional Review of Prospect
Regional compilation and synthesis of information on the study area, including a review of the following potential materials:
Any existing studies or databases such as the June 30, 2014 evaluation of prospective resources undertaken by B. Whelan
The Hydrodynamic Atlas of the Williston Basin
Land sale data
Well locations, tops, shows, production history
The Exshaw Resource Play Micro-study
Discovery Digest and Spark publications
Internet search materials
Montana State publicly available files
Publicly available satellite imagery and digital elevation data
A base map from seismic vendors of available 2D & 3D seismic data for purchase
Available data from nearby analogue fields along with their well test and production data
Any available DST test reports, production test results, production logging interpretations, monthly production volumes by well and pressure histories obtained from the areas of interest
Any available reservoir fluid property test reports as well as laboratory PVT test reports
Phase II: Enhanced Technical Studies
Phase II will summarize prospect identification and drilling recommendations. These studies may include:
QC review of potentially purchased 2D or 3D seismic trade data from third party vendors
Interpretation of the purchased seismic data and integration with available or purchased well data
Identification of prospects and leads
Prepare a seismic acquisition program to complement industry trade seismic data if required
Interpret potentially acquired seismic
Finalize geophysical interpretation and synthesis on analogue petrophysical, geophysical, geological, and engineering data
Identify and recommend a drilling location
Develop prognosis for exploration well target
Canvas drilling and completion service providers for indicative costs
Preliminary economics to determine if drilling warranted
Present report on drilling prospect including summary of actions for Phase III
At the Company's discretion, an NI51-101 compliant Prospective Resource report could be provided at the end of Phase II, summarizing the low, best, and high estimates of petroleum initially-in-place and the undiscovered prospective resources for any prospects identified during Phase II.
Phase III: Drilling and Completion Recommendations
Phase III would involve work on finalizing plans for drilling and completions. These studies may include:
Finalize geophysical and geological interpretation
Finalize recommendations on drilling and completions programs
Final pre-drill economic evaluation
Establish development plan
Present report on above recommendations
Phase IV: Drilling and Completion of the Well
Should the Company wish to proceed after review of the findings of the Phase III drilling and completion recommendations, Sproule could provide technical assistance to the Company's drilling, completions and testing contractors as required. If successful in the drilling campaign, Sproule would be available to generate an NI 51-101 compliant reserves evaluation report.
Finally, the company would like to announce the launch of its redesigned & updated corporate Website. Further information will appear on the site as soon as it becomes available. The Website now features a "Sign Up" feature allowing interested parties to receive News Alerts and Filing Alerts to their Inbox automatically.
Read more about the Woodrow Prospect and its work program, and additional information about the Company and its latest press releases at the official Black Stallion website at http://www.blackstallionoil.com.
ABOUT BLACK STALLION OIL & GAS
Black Stallion Oil & Gas, Inc. (OTCQB:BLKG) is a publicly traded, Los Angeles, CA based energy exploration company focused on developing America's abundant shale oil and gas resources. Black Stallion is currently focused on the emerging Alberta Basin Bakken in northwest Montana. Black Stallion has secured the right to acquire 50% ownership in the large 12,233-acre Woodrow Prospect in Teton county, northwest Montana, within the Alberta Basin Bakken fairway.
* US Geological Survey (USGS) website, May 2, 2013.
This press release may include certain statements that are forward-looking in nature and that involve a number of uncertainties and risks. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based on Black Stallion's current projections and expectations in regard to future events, which are based on currently available information. The forward-looking statements in this press release may also include statements relating to Black Stallion's anticipated business prospects, strategies, new developments, financial performance and similar matters. Black Stallion disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission permits US companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as "measured," "indicated," and "inferred resources," which the SEC guidelines prohibit US registered companies from including in their filings with the SEC. US investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.blackstallionoil.com.
CONTACT: ON BEHALF OF THE BOARD OF DIRECTORS,
Black Stallion Oil & Gas, Inc.
George Drazenovic, CEO
633 W. 5th Street
Los Angeles, CA
(September 21, 2015 - 10:58 AM EDT)
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