MARKSMEN ENERGY INC. : http://www.marksmenenergy.com/ : QwikReport
Marksmen provides an Operational Update for Ohio
Cambrian Knox Unconformity Project - South Central Ohio
In 2013, MARKSMEN ENERGY, INC. ("MARKSMEN") joint ventured with Houghton Investments, LLC ("Houghton"), an Ohio based private company, to jointly develop several thousand acres within an area of mutual interest (AMI) in south-central Ohio. These lands are considered highly prospective for Knox Unconformity oil exploitation utilizing 3D seismic, vertical drilling, and potentially horizontal drilling in the future. Pursuant to the terms of the operating agreement, MARKSMEN conducted an initial five square mile 3D seismic survey over Houghton lands to earn a 75% minimum working interest in Knox Unconformity wells drilled on those lands as a result of the 3D seismic survey. MARKSMEN and Houghton will jointly drill the vertical wells targeting the Knox Unconformity. Landowner royalties on Houghton lands are 12.5% of gross proceeds from the wells. Wells drilled within the 3D, on Houghton lands, will be drilled and completed jointly with a working interest split of 75% to MARKSMEN and 25% to Houghton. For wells drilled as a result of the initial 3D seismic survey, or additional 3D seismic surveys within the AMI but not on Houghton lands, MARKSMEN will have a 90% working interest and Houghton will have a 10% working interest. MARKSMEN will charge a proportionate fee to Houghton to recover 3D seismic and land costs.
The joint venture technical team selected a contiguous area of five square miles of joint venture lands for the first of several planned 3D seismic surveys. MARKSMEN contracted Mustagh Resources, located in Canmore, Alberta, Canada, to design the 3D seismic survey. Mustagh Resources has to date designed over 3,500 3D seismic surveys, internationally, including in Ohio. Bay Geophysical, Inc., of Traverse City, Michigan, was selected to acquire the 3D seismic data for the project.
MARKSMEN's first 3D seismic survey was completed in early 2014 and developed some 20 Cambrian Knox remnant targets and drilling locations. In 2014 MARKSMEN drilled four discovery oil wells. The gross cost to drill, complete and tie-in the wells is estimated at $350,000 to $400,000 per well, which includes a per well allocation of $100,000 for 3D seismic acquisition. MARKSMEN completed a second 3D seismic survey in 2015 and identified numerous additional Cambrian Knox remnant targets.
In 2014, MARKSMEN initiated a significant land acquisition program, for its planned acquisition of additional 3D Seismic Surveys and the drilling of numerous shallow vertical oil wells, in 2015 and subsequent years.
The Knox Unconformity is highly prospective for oil in south central Ohio and the MARKSMEN's lands have been geologically mapped by analyzing the 2D seismic data and the well logs from previously drilled vertical wells that penetrated the Knox Unconformity in the immediate area. There are wells drilled in the vicinity of MARKSMEN's lands that have produced more than 200,000 barrels of oil from the Knox Unconformity utilizing 2D seismic surveys, with more than 1 million barrels of oil produced from 3 fields. 3D Seismic has been proven as a viable and cost effective exploration tool to accurately image hydrocarbon traps associated with the Knox Unconformity in other parts of Ohio; however, MARKSMEN's 3D seismic surveys are the first 3D seismic surveys in this part of south central Ohio.
MARKSMEN's Cambrian Knox exploration and development program is an exciting yet relatively low risk, entry and growth opportunity in Ohio. In 2016 MARKSMEN evolved into a producing oil company and going forward MARKSMEN will build on its land position as well as its production base from the exploration and development of its shallow, high quality, light, 42 API oil prospects using modern 3D seismic survey technology.
MARKSMEN plans to drill several development and explorations wells in 2017.
For additional information regarding this news release please contact Archie Nesbitt at (403) 265-7270 or e-mail firstname.lastname@example.org
This information update may contain certain forward-looking information and statements. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.