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Ameriwest Properties
PROPERTY ONE: South Glenrock C
Powder River Basin, Wyoming
Encana, Devon Oil, Marathon Oil and numerous
other oil giants all hold hundreds of leases
where Ameriwest is producing!
Even I was surprised to learn that 1,585 companies and individuals hold 6,282 active leases on nearly 3.5 million acres in the Powder River Basin. This famous Wyoming basin is a hotbed of drilling because it’s one prolific property.
To give you an idea of the enormity of this oil pool, the famous Big Muddy formation, which is just (a small) part of the basin, has produced 52 million barrels of oil over the years.
No wonder corporate oil raiders like Devon, Encana and Marathon Oil are busy pumping out black gold in the basin.
Then there’s our shining star, Ameriwest, already producing right alongside the big boys! Currently, production is just getting ramped up on this property where the company has a 99.5% working interest.
Engineering firm Nitec LLC reports that their geological evaluations show 4.9 million barrels of oil in recoverable reserves that can be tapped into using a tertiary recovery method known as CO2 injection. I’ll talk about how that works in a minute.
Right next door major production
is already taking place!
Not only is Ameriwest already producing but the company is producing right next door to none other than oil giant Anadarko in their Salt Creek field.
Anadarko has been producing 8,900 barrels a day in the Salt Creek Field with 10,000 a day projected—and Salt Creek neighbors Ameriwest’s property!
Ameriwest’s South Glenrock C field is also purported to be analogous to oil heavyweight Anadarko’s Salt Creek Field where over 600 million barrels of oil has been pulled from the ground since the first well was drilled.
There’s oil everywhere out there!
You gotta love it when you learn that right next door to Ameriwest’s South Glenrock C property is the South Glenrock B field which boasts current gross production of 210 barrels of oil per day with a value of over $10 million.
Taking these factors into consideration—not to mention the Fed’s latest rate cut, our country’s current recession and OPEC’s unwillingness to increase production—Ameriwest’s South Glenrock C field could be worth much more even just weeks from now the way oil prices are rocketing!
Using a tertiary method that’s fast gaining approval as a way to extract oil embedded in rock, CO2 enhanced oil recovery is increasingly being employed to break free formerly inaccessible oil and gas.
Years ago, oil giants like ConocoPhillips use to produce in these areas but didn’t have the technology available that would allow them to get all the oil. So they produced as much as they could and left the rest.
Now these former producing properties are being leased by oil companies to access the oil and natural gas still trapped in the formations. That’s exactly what Ameriwest has done on virtually every one of its properties. They’re all former producers for big names like ConocoPhillips and there’s still oil in these properties.
Sounds good but it’s not enough to just acquire the property.
Companies like Ameriwest have to have the technology, expertise and financial strength to drill and produce. That’s where many juniors stumble and for Ameriwest, where Exxon is unwittingly about to play a major role, saving Ameriwest what could amount to millions in savings!
To say this is huge doesn’t do this statement justice
You see, ExxonMobil is supplying one of Ameriwest’s neighbors with CO2 from its LaBarge gas field which the neighboring oil company needs for enhanced oil recovery at several of its nearby properties.
That’s important because now Ameriwest doesn’t have to spend one red cent to buy it! When ExxonMobil unleashes the CO2 for Ameriwest’s neighbor—and that same company finishes their $18 million pipeline—Ameriwest will benefit automatically in its South Glenrock C field!
The C02 will flow straight in, creating the pressurization that will break apart the rock and allow the oil to flow. It will naturally happen and there’s nothing anyone can do to stop it. Talk about a windfall gain!
How good is CO2 as a recovery tool? $420 billion energy giant Anadarko increased production 47%!
Since tertiary CO2-EOR is more recently making headlines, I did some investigating. To say I was impressed with my findings is an understatement.
During my discovery phase, I learned that Anadarko is successfully using CO2 flooding in the Salt Creek Field just miles from Ameriwest’s property.
Anadarko is no small player. This company is one of the world’s largest independent oil and gas producers with assets of over $420 billion.
It operates 3,500 wells across Wyoming and Montana, and is not only successfully using CO2 injection in its Salt Creek Field in the Powder River Basin, but also in Texas, Oklahoma, Alaska and Algeria.
In addition, the company has been using this recovery technique in the Second Wall Creek Formation in Big Muddy since 2004. Results have been stellar.
Anadarko achieves a near 50% increase
in production using CO2 recovery
Anadarko’s production increased 47% in Q2 2005 over Q1 2005. Subsequent quarters 3 and 4 saw growth of 20% and 17% respectively. Anadarko was so pleased with the response that the company initiated a CO2 pilot program in the First Wall Creek Formation.
CO2-EOR is proving so successful and lucrative in Wall Creek, Anadarko plans to use this technique to recover an additional 150 MILLION barrels of oil in Salt Creek—remember, this is the field right next to AWEC’s property!
To give you another frame of reference, Encana (NYSE:ECA) is also injecting CO2 into its Weyburn Oil Field in Saskatchewan, Canada. The company hopes to add as much as 130 million barrels of oil that would have otherwise been abandoned.
Currently there are over 80 CO2 EOR projects in the U.S. and more than 230,000 BOPD currently being produced by CO2 injection.
Since it was first introduced in 1972 in Scurry County, Texas, CO2 injection has been successfully used throughout the Permian Basin of West Texas and eastern New Mexico. Currently it is being used on a more limited basis in other states such as Kansas, Mississippi, Wyoming, Oklahoma, Colorado, Utah, Montana, Alaska, and Pennsylvania.
Property 2: Skull Valley
Tooele County, Utah
Skull Valley was first identified by Gulf Oil Company in the 1970s. Today, Ameriwest owns a 100% working interest in the nearly 7,000 acre
lease on the property.
Engineering reports point to as much as 50-100 million barrels of oil could be produced from Skull Valley. A stunning 25 years of exploration work has gone into this property so it’s easy to see why engineering experts are confident this oil can be recovered by primary production methods.
What’s intriguing to me is that the property has structural anomalies that have been likened to that of the oil-rich Grant Canyon discoveries just 125 miles away in neighboring Nevada.
Since 1983 Grant Canyon has produced over 20 million barrels of oil and may ultimately produce 30 million barrels.
At one point in 1987, Grant Canyon was producing 3,809 barrels of oil per day, making it one of the most prolific single producing onshore well in the U.S.
Right down the road just south of the Skull Valley Prospect in Sevier County, Wolverine Gas and Oil announced that its Kings Meadow Ranch has about 40 barrels PER HOUR flowing from the Navajo Sandstone.
Yet another property surrounded by oil, oil and more oil!
Skull Valley could be the next great Grant Canyon!
I like to see a junior on the move, already producing yet continuing on a buying spree, snapping up more property. Ameriwest already has
the capital to do so—with another $30 million in private placement expected over the next 12 months according to what management has told me.
Even though you may not see the enormous amount of oil that large oil producers pull from the ground on just one property, you have to remember that in this case it’s the cumulative numbers across all junior properties that bring the big money.
All of these finds keep adding to the bump in production. Next thing you know the company has 150–200–300 million barrels of oil being produced. It doesn’t take long for each property’s recoverables to add up.
Property 3: Burke Ranch
Powder River Basin, Wyoming
Ameriwest's most recent acquisition, Burke Ranch, is already a PROVEN producer—and is yet a second property in the Powder River Basin!
At this writing the company intends to ramp up production on its 1,920 acres where it has a 95% working interest. It also intends to drill wells on an additional 7,500 acres where the company has a 100% working interest.
Currently, the company is producing 24 barrels of oil per day at this field. Discovered in 1953, third-party engineering reports estimated there was still 13 million barrels of original oil in place. Reports show there are 3.4 million barrels of oil recoverable.
107.3 million barrels of oil could line your pocket$!
$11+ BILLION worth at today’s prices…potentially
$16+ BILLION at tomorrow’s prices!
Now’s the time to jump into junior oil and gas companies—the ones
like AWEC—that are already producing. Engineering reports firmly convince
me that the company is sitting on a mountain of black liquid gold!
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