Pathfinder Field's Contingent Resources Increases to 540 BCF of Gas & 54 Million Barrels of Oil
P90 (90% probability) gas resource up 145% year-on-year (2017: 220 BCF) and oil resource up 55% (2017: 35 million barrels of oil)
Fremont Petroleum Corporation Ltd (ASX: FPL) (‘Fremont' ‘the Company') reports that an independently compiled Resources & Reserve report by Gustavson Associates confirms a significant increase in the P90 (90% probability) Contingent Resource(1C) for the Company's 100%-owned Pathfinder Field in Colorado.
While the oil and gas resources of the field have increased very materially – P90 gas resource up 145% to 540 BCF (.54 TCF) and the oil resource up 55% to 55 million barrels – a key highlight is Gustavson Associates' assessment that the Pathfinder Field's geology is comparable to Colorado's prolific Wattenberg Field, a field that has produced 2.8 TCF of gas and could yield a further 5.2 TCF.12
Based on comparable well logs in the Pathfinder and Wattenberg Fields, the Niobrara, Codell, and Greenhorn Formations appear to be similar in character in both areas. The report illustrates that the physical properties of the Niobrara Formation are similar between the two areas indicating potentially similar production performance.
The Resources & Reserves have increased due to the size of the Pathfinder Field growing 16% from 16,798 acres to the 19,500 acres; interpretation of new data secured from recent oil production growth; successful flow testing of three gas wells at Pathfinder, and improved oil & gas prices.
President and CEO of Fremont Timothy B. Hart said: “The independent upgrade of Reserves & Resources delivers considerable value to Fremont and confirms that our strategy of growing the size of the Pathfinder field, increasing oil production and proving up our gas resource is the right one.
“The similarities to the Wattenberg Field cannot be underestimated and recent transactions of Wattenberg acreage provide clear third party validation that Pathfinder's acreage is very valuable. With acreage increasing since the report was published, Pathfinder's resources and reserves will grow again. The report assists greatly with our gas sales and debt funding negotiations, both of which are advancing very well. More developments will be announced soon.”
A presentation with more detail on the report follows on from this announcement and can be found below.
The report was completed by Gustavson Associates in accordance with the VALMIN Code promulgated by the Australasian Institute of Mining and Metallurgy, and as specified in the VALMIN Code, the reserves and resources definitions found in the Petroleum Resources Management System (PRMS).