TSX.V: WVR   Last: $0.01   Chg: +0.000   Vol: 60000   Date: Aug 24, 2015
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Phat City Project

The Phat City Project is located in Valley County of northeastern Montana, near the town of Glasgow. Wind River is the operator of the project and owns a 70.125% working interest in the project. The project consists of 12,184 gross (8,567 net) acres. The project is situated on the northwestern shelf of the Williston Basin. It is a "by-passed pay" prospect that was initially identified and developed using existing well data, reprocessed seismic, petrographic analyses, well cuttings and cores, as well as integrated petrophysical analysis. The central premise of the Phat City Prospect is that several wells drilled in the early 1950s, prior to the recognition of the Nisku play by industry, have discovered oil pay in the Nisku.

A test well drilled by Wind River in November 2011, the Cornwell #1-14 well, confirmed oil in both the Nisku and Bakken system (Three Forks) formations at depths of approximately 5,500 feet.

Nisku Formation

A NI51-101 report was completed in December, 2014 and indicates a potential resource of 13 MMBO to 70 MMBO in the Nisku formation on the Phat City project. The test results included the following information from the Cornwell #1-14 well:

The well penetrated and logged the Nisku formation and identified the presence of 27 feet of porous, Nisku dolomite. The Discovery Group (petrophysical) and Stolper Geologic (petrography) reviewed technical information obtained from the well to supplement Wind River's studies. That work indicates that oil is trapped by the fault that runs through the Phat City project. Two porous benches of Nisku were identified. The upper bench has eight feet of oil saturated pay. The lower bench is water saturated and is separated from the upper bench by ten feet of dense dolomite.

The NI51-101 report completed in December, 2014 reported potential resources range of recoverable oil for the Nisku formation of 156 MBO to 838 MBO per 160 acre drilling location. Information acquired from the Cornwell 1-14 well as well as other information acquired by Wind River will help determine the optimum location to further develop oil production from the Nisku formation.

Bakken (Three Forks) Formation

The Cornwell # 1-14 well penetrated and logged 5 feet of upper Bakken shale as well as 70 feet of the Three Forks formation. The Three Forks formation appears to have adequate potential to warrant additional testing with horizontal drilling.  The Company is now conducting studies to further define testing of  the Three Forks formation on the Phat City acreage block.

The NI51-101 report completed in December, 2014 reported potential resources range of recoverable oil for the Three Forks formation of 62.56MBO to 347.56 MBO per 80 acre drilling location.

MBO = Thousands of barrels of oil
MMBO = Millions of barrels of oil