Derek Oil & Gas Corporation - Other Prospects

Projects Overview Newcastle Formation Other Prospects Photo Gallery

FALL RIVER FORMATION

As a result of the detailed 3-D seismic survey carried out on the north portion of the LAK Ranch property, a number of area prospective for oil have been identified in the Fall River Formation. This formation, described as a buff, tan, brown sandstone, siltstone and shale unit (Ref: Love, 1987) is below the Newcastle Formation and is separated from the Newcastle Formation by the Skull Creek Shale. The Fall River Formation outcrops in the northeast corner of the LAK Ranch property. In the area of the pilot operation, the depth to the Fall River Formation (also known as the "Dakota Sandstone") is estimated at about 2500 feet.

Major producing fields in the Fall River Formation, Powder River Basin within reasonable proximity to the LAK Ranch property include Coyote Creek, Coyote Creek South, Buck Draw, Buck Draw East, Buck Draw North, Nutcracker and Glenrock South. Production from these fields to-date is approximately 130 million barrels of oil and 150 trillion cubic feet of gas (Ref: Wyoming Oil & Gas Conservation Commission).

MINNELUSA FORMATION

As a result of the detailed 3-D seismic survey carried out on the north portion of the LAK Ranch property, a number of areas prospective for oil have been identified in the Minnelusa Formation. This formation, described as a light grey and red sandstone, breccia that merges with anhydrite in subsurface, thin limestone and dolomites and red & black shale (Ref: Love, 1987) outcrops to the northeast of the LAK Ranch property. In the area of the pilot operation, the depth to the Minnelusa Formation is estimated at about 5000 feet.

Major producing fields in the Minnelusa Formation, Powder River Basin within reasonable proximity to the LAK Ranch property include Dillinger Ranch, Raven Creek, Duvall Ranch, Halverson, Halverson North, Stewart, Stewart East, Timber Creek, Timber Creek North, Timber Creek Northwest and Timber Creek South. Production from these fields to-date is approximately 135 million barrels of oil and 3 trillion cubic feet of gas (Ref: Wyoming Oil & Gas Conservation Commission).