Energy Drilling will initiate operations this summer with plans to reach total depth on the 7,000 foot well on or before July 31, 2015. They will be utilizing Energy Drilling's Rig 8 for this particular Test Well. An additional 12 to 15 days will be needed to complete the well after reaching total depth. The time it takes to complete the well is dependent on results of the cuttings and potential oil shows from the Jurassic-age zones.
Downhole tests and geologic findings gathered from the Virtus Lone Pine 34-11-5 Well will be used in conjunction with the Company's existing seismic resources to mitigate dry hole risk for the second well planned for the next calendar year. The second planned well will be drilled to a depth of approximately 12,000 feet to test additional zones.
Rupert Ireland, CEO of Virtus, said, "This partnership with Energy Drilling to drill our first vertical test well at Parowan is very exciting. Gary Smith, CEO of Energy Drilling has more than 38 years of drilling experience with over 30 years in Utah alone. We believe this contract and partnership ensures a highly capable and efficient rig to execute on our 2015 goals."
Brett Murray, COO of Virtus, said, "Drilling this first well will satisfy the BLM's Federal Well Obligation for holding leases within the federal unit beyond their primary terms. The importance of drilling a shallower well as part of the Federal Unit puts Virtus in a position to weather the current energy markets while retaining our entire interests beyond their primary terms."
Gary Smith, CEO of Energy Drilling LLC, said, "Rig 8 is a 1,000 horsepower rig capable of drilling total depths up to 10,000 feet. It is in excellent condition as it was completely reconditioned in 2012 and has drilled over five wells since its upgrade."
Submission of Application for Permit to Drill
Additionally, on March 23, 2015, Virtus submitted its Application for Permit to Drill (APD) to the Utah Bureau of Land Management (BLM). Upon approval of the APD, Virtus will begin building the well pad and getting all necessary requirements to spud the well this summer as the Lone Pine 34-11-5 will be the company's Federal Unit Well Obligation. Interested parties can view new pictures of the Virtus Lone Pine 34-11-05 pad site by visiting http://www.virtusoilandgas.com/virtus-lone-pine.