Covenant receives permits for Sweetgrass Arch wells

Covenant receives permits for Sweetgrass Arch wells

2010-09-22 12:13 ET - News Release


Mr. Frank Port reports

COVENANT RESOURCES LTD. COMPLETES PERMITTING FOR FIRST TWO WELLS IN MONTANA

The operator (Robinson Oil Company LLC) of Covenant Resources Ltd.'s 41,500-net-acre Sweetgrass Arch prospect located in Montana, has completed permitting of the first two wells to be drilled in this project, the Kinyon 14-2 and the Hellinger 15-2.

These wells will be drilled to total depth of 1,950 feet and are targeting oil accumulations in the Madison group as well as the underlying Bakken formation in Toole county, Montana. This will be the start of the exploration that Covenant undertakes on its recently acquired Alberta basin properties in Montana (Sweetgrass Arch).

These initial prospects were generated by utilizing proprietary 2-D and 3-D seismic data in conjunction with comprehensive geologic interpretation of well control data in the area. These two wells will test a prominent structural closure on top of the Rierdon, along with other prospective multiple pay zones. This will be the start of the exploration that Covenant undertakes on these recently acquired Alberta basin properties in Montana.

"This is our first entry into Montana, there is a significant opportunity for growth within this basin both through land acquisition and at the bit," said Frank Port, Covenant chairman, president and chief executive officer. "We will continue to seek opportunity to increase our footprint within the Williston basin in Montana, North Dakota and Saskatchewan."