Fremont Petroleum Corporation’s (ASX: FPL) shares surged more than 50% in early morning trade after the company announced it had intersected crude oil in the Pierre formation of its Bird #13-18 (Bird) well, part of its wholly-owned Pathfinder project in Colorado, US.
Crude oil is flowing and the company has diverted it into portable tanks.
With about 1,000 feet left of drilling to reach its target depth of 4,000ft, Fremont Petroleum Corporation stated hitting oil at this level was “encouraging” because it is the lower section of the Pierre formation that typically stores the majority of oil reserves.
The company added the oil discovery indicated there may be a substantial oil reservoir.
Based on the oil discovery, Fremont Petroleum Corporation has advanced its drilling at Bird to around-the-clock and expects to reach the target depth within three days at its US$400,000 budget.
To facilitate the 24-hour drilling activities, the company redeployed its Pathfinder C#11-12 team to assist at Bird until the target has been reached.
Bird was spudded on 10th August 2017 after the company used 3D seismic technology and advanced surface geochemistry to detect a hydrocarbon accumulation in the area.
Headquartered in the US, with an office in Sydney, Fremont Petroleum Corporation (formally known as Austin Exploration Ltd) wholly owns the 16,798-acre Pathfinder licence area in Colorado.
In May 2017, Fremont Petroleum Corporation released an independent reserves and resources report which indicated the company’s licence area in the Denver Julesberg Basin was valued at A$2.54 million, which was a 126% increase on a February 2017 report.
According to the company, its Pathfinder project is large enough for more than 500 wells, with the company currently operating 26 oil and gas wells in the field.