***OIL JV Highlights***GSR & POP are drilling 2 REEF Targets with 400 bopd potential. They have 25 drill locations.
400x (50%) 12.5 wells success rate = 5000 bopd = 500Mill MCAP
500Mill MCAP divided by 2 = 250Mill MCAP for both GSR & POP
250Mill MCAP divided by 69Mill GSR shares out = $3.62
$3.62 does not include any value for one of the best looking early days Gold property’s going in the capital markets right now.
Now let`s look at the REEF target J4 that is about to be drilled with GSR on a 50 50 basis now that the Joint Venture is approved.
SOUTH RESTON, MANITOBA
On the South Reston J4 property (2.25 sections), recent detailed seismic interpretation has clearly identified a large carbonate mound in the Lodgepole Formation. This is a large reef-like structure 100 metres thick and measures 2.6 square kilometres in extent, and has a strong resemblance to Waulsortian mounds that are highly productive oil producers in the Williston Basin. A 1,000 metre vertical well has been proposed to test this large mound, which is a strong drill target with excellent upside potential.
Now let`s look at the second REEF being drilled with GSR on a 50 50 basis
KIRKELLA, MANITOBA
On the Kirkella J3 property, a site has been surveyed for an 800 metre vertical well targeting seismically indicated porosity in an undrilled area updip of the Kirkella Lodgepole oil field. Two of the nearest producers at the north end of the field had three month initial production of 418 and 251 bopd respectively.Bakken production in the immediate area confirms that the 100% owned J3 property has good dual-zone potential.