Black Stallion Oil & Gas Receives Sproule's Phase I Work Program Report and Conclusion
Report Confirms Woodrow Prospect's Structural Location is Favorable for Hydrocarbons
LOS ANGELES, Nov. 18, 2015 (GLOBE NEWSWIRE) -- Black Stallion Oil & Gas, Inc. (OTCQB:BLKG) (herein after "Black Stallion", "we", "our" and/or "the Company") is pleased to announce that Calgary-based Sproule Associates Limited ("Sproule") has completed Phase I of a four-phase work program on the Company's 12,233-acre Woodrow Prospect in northwest Montana, within the Alberta Basin Bakken fairway, due west of the Williston Basin.
Producing wells to the North and East were identified at each of the five main reservoir horizons: Swift, Madison (Sun River Dolomite), Bakken, Nisku and Duperow. Sproule concluded the overall structural location is favorable for hydrocarbons to migrate updip onto the regional high, and recommended proceeding with Phase II of the Work Program.
Black Stallion received Sproule's Phase I Data Compilation Report on November 17, 2015. The report outlined Sproule's initial regional review of prospect, including a regional compilation and synthesis of information on the study area (see further below for complete list of items reviewed). Sproule integrated all available public domain data into a 3D visualization environment and data base to improve the spatial understanding of well, seismic, oil and gas tests and producing fields. Depth structure surfaces for the five main reservoir horizons were created using the existing well tops information. As was anticipated, well penetrations for the reservoir targets decrease and are very sparse below the Madison.
Black Stallion's CEO, George Drazenovic, commented: "We now have a much better understanding of the nature of our holdings. Sproule's depth structure maps in the Phase I report suggest that local structural culminations may be present on the overall northwestward plunging structural feature. The acquisition of additional seismic data in Phase II will provide us with further delineation."
Sproule's regional review of prospect included the following items:
Existing studies and databases, such as the June 30, 2014 evaluation of prospective resources undertaken by the author of the Company's NI 51-101 report, B.L. Whelan, P. Geo.
Land sale data made available to Sproule
Well locations, tops, shows, production history compiled from Sproule's Accumap database
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
Available DST test reports, production test results, production logging interpretations, monthly production volumes by well and pressure histories obtained from the areas of interest
Building on the findings of the Phase I report, Phase II of the Work Program will mature the Woodrow Prospect exploration play by:
Acquiring well log data for key wells, including regional and local maps with Digital (D) and Raster images (R), which would be digitized
Constructing detailed stratigraphic correlations between all wells in the database to refine the geological well tops and reservoir thickness and quality variations
Providing petrophysical analysis of reservoir zones to determine appropriate ranges of reservoir parameters for use in probabilistic volumetric calculations
Continuing search for seismic data
Providing quality check and Company purchase of appropriate 2D seismic data
Re-processing 2D seismic as required
Interpreting 2D seismic to refine the structural model between the sparse well control
Integrating the revised well correlation framework and 2D seismic interpretations to produce refined mapping of each potential reservoir zone
Calculating preliminary in-place volumetric estimates for identified prospective structures and ranking attractiveness
Identifying potential drilling targets
The Company expects to begin Phase II of the Work Program and anticipates the ongoing support of the Sproule team.
FOR ADDITIONAL INFORMATION
For the full 61 page Sproule Report, additional information about the Company and its latest press releases, go to 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, which lies due west of, and shares characteristics with, the prolific Williston Basin. Black Stallion has acquired a 100% Working Interest in the large 12,233-acre Woodrow Prospect in Teton county, northwest Montana, within the Alberta Basin Bakken fairway.
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
(November 18, 2015 - 9:02 AM EST)
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