Rough House Project
Conventional oil play. Drilling in Q1 2017 targeting 200+ BOPD per well – free carried.
American Patriot has a 30% working interest in the Rough House Project which covers 24,221 gross acres in the DJ Basin across the Washington, Lincoln Arapahoe and Elbert Counties in Colorado.
- Rough House is a conventional oil play focussed on stacked pays with multiple carbonate reservoir targets.
- A farm out was struck in February 2016 with Running Foxes Petroleum, a leading Colorado oil company who discovered the Arikaree Creek oil field – a 1,400 BOPD field.
- The Running Foxes farm out deal was a 5 well deal, which will involve economic low cost conventional drilling.
- There are two commitment wells of which American Patriot is free carried, plus a 3 well option.
- The first two wells will be development wells will be next to the Arikaree Creek Field.
- Running Foxes has significant on ground operational and development expertise in Colorado, owning its own drill rig fleet and workover units.
- The acreage is in close proximity to recent oil producing discoveries which have quick paybacks and nearby active leasing:
- Nighthawk Energy: 300-400 BOPD from 4 wells, currently approximately 1,500 BOPD total production from the Arikaree Creek Oil field.
- Wiepking Fullerton: 184,00 net acres, 3 wells were drilled recording between 694 and 1,600 BOPD.
- Includes a vertical drilling opportunity to around 11,000 feet, with large upside potential.
- There is potential for future JV opportunities with Running Foxes in an Area of Mutual Interest which has been established.