Basic Earth provides update on Dunn County horizontal Bakken well
  by: OilOnline
  Friday, June 27, 2008

Basic Earth Science Systems, Inc. reported that the Paulson 14-9H, a horizontal Bakken well in Dunn County, North Dakota, has been completed and is now on production. The well had its best day near the end of May when it produced 687 barrels of oil. During May, the well produced approximately 5,400 barrels of oil over 14 days for an average of 387 barrels of oil per day. It should be noted that on several days the well did not produce for a full 24 hours. Also during May, the well was flowing up the casing with over 1,500 psi of pressure. Once pressures moderate, we expect to check the wellbore for obstructions and install tubing to allow the well to produce up a tubing string. Once this more conventional configuration is established we will have a better idea of where production should stabilize. Basic has a 1.2469% working interest (0.9975% net revenue interest) in the well which is operated by Marathon Oil Company. Basic estimates that it has spent approximately $80,000 on this effort.

"This is a small, but very nice addition to our Bakken exposure," commented Ray Singleton, President of Basic. "In related events, the success of offset wells near our Banks Prospect, a 13,000 acre horizontal Bakken project, has dramatically enhanced the viability of our acreage. As a result, the Company and its partners have been approached by several companies wishing to acquire a portion of Basic's acreage. While some offers are enticing, at this point, no agreements have been made. If we were to enter into an agreement, in addition to being fairly compensated for our investment and maintaining as much of our interest as possible, our objective would be to increase the effectiveness of the original joint venture agreement so that development could not be stalled by a handful of non-consenting owners. Regarding our future plans, the next few months should be exciting. With a number of diverse efforts both underway and in the planning process we continue to pursue opportunities that will have a strategic impact on the Company."

Click here for more of Today's News Headlines