Located in the North West of Oklahoma’s pan handle the Keyes Dome is known as a low geological risk Mississippian reservoir conventional oil play. The play targets the St. Genevieve, St. Louis and Spergen pay zones from about 4,600 to 5,000 feet depth with the Arbuckle further down at 5,290 ft.
Having supplied natural gas to the city of Denver for over 50 years, exploitation for oil at the Keyes Dome has historically been challenged due to earlier more conventional drilling & completion methods using water based drilling fluids damaging the formation’s permeability around the well bore, resulting in poor recovery.
The Company is confident that by employing more advanced under-balance drilling and proprietary completion techniques using oil based drilling fluids, will serve to maintain permeability and thereby enhance considerably the recovery of oil in these targeted pay zones. At today’s prices, the potential for this business case at Keyes Dome is quite robust. ( click here to view presentation - PDF )
The concession currently comprises five sections (3,200 acres). The company intends to increase its land holdings. The Company commissioned and received an independent Reserves and Resources Evaluation Report in accordance with NI 51-101 prepared by Gustavson Associates (Boulder, CO), in January 2013 that supports a “best estimate” Contingent Oil Resource estimate for the project area at 40.0 million barrels (bbls), or 1.0 million barrels per well, as long as employing under-balance drilling and completion techniques using oil based drilling fluids can be successfully demonstrated.
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All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements include forecasts for production, cash flow, capital expenditures and debt levels and are based on estimates for commodity prices, reservoir performance, drilling performance and industry conditions including availability of services and weather. These statements involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond GoldenEye Resource’s control, that may cause actual results to differ materially from a conclusion, forecast or projection in such forward-looking statements. GoldenEye Resources believes that the expectations reflected in those forward-looking statements are reasonable at the time made but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this presentation should not be unduly relied upon. These statements speak only as of the date of such information, as the case may be, and may be superseded by subsequent events. GoldenEye Resources does not intend, and does not assume any obligation, to update these forward-looking statements whether as a result of information, future events or otherwise.