Underground Energy brings latest recovery techniques to large scale shale oil opportunities
Underground Energy is a US corporation whose primary focus is to identify, acquire rights to, explore for, develop and produce oil reserves from shale formations in North America. Underground Energy focuses on identifying and acquiring sizable land positions and prospects in historically prolific but under-explored shale formations as well as in emerging shale plays that, in both instances, hold large volumes of oil and gas resources. UE currently holds mineral rights on approximately 83,140 net acres of highly prospective lands in California and Nevada. GLJ Petroleum Consultants of Calgary, Alberta, estimates that the company's prospective shale oil leases at its Asphaltea prospects could contain well over 2 billion barrels of undiscovered oil in-place (OIP). In addition, GLJ, in its report on Underground Energy's Asphaltea assets dated April 6, 2011 and effective June 1, 2011, attributed un-risked "best estimates" of 1.7 billion barrels and 630 million barrels, respectively, of undiscovered petroleum initially in place in the two Monterey prospects covered by Underground Energy's Asphaltea Leases. A summary of this report is set out under the Corporate Reports section of this website.
In addition, the Company signed a purchase and sale agreement on October 31, 2011 for the acquisition of a total of an additional 33,037 net acres in six prospect areas, including two areas in the Santa Maria Basin and four areas in the San Joaquin Basin. This acquisition consolidates the Company’s position in the Santa Maria Basin and provides a solid entry into the San Joaquin Basin and provides a mix of initial production, multiple drill ready locations and multiple exploration prospects. This acquisition is scheduled to close on or around November 15, 2011 and full details are contained in the press release dated November 1, 2011 and the Company’s November Corporate Presentation. Copies of both are available on this web site.
We currently have 27,380 net acres of prospective Monterey Shale in California and are actively seeking to leverage our existing land positions, relationships and expertise in California by aggregating additional holdings in Monterey and analogous shale opportunities.
Our initial focus is California, largely due to the unique opportunities presented in the Monterey shale formation in that state. The Monterey shale has been a prolific historic producer of oil in California and has recently attracted renewed interest. California is attractive to us not only because of the amount of oil resources remaining, but also the amount of infrastructure already in place that is necessary to the recovery, transport and sale of oil. This allows Underground Energy to bring projects on-line quickly and reduces associated production costs. Our Management Team possesses significant knowledge and experience in California and the Monterey Shale formation as well as expertise in the latest recovery techniques and technologies, many of which have not been historically utilized onshore in California.
Our Management Team also has significant knowledge and expertise in Nevada which, has emerging shale oil plays with large scale potential and characteristics similar to the Monterey, Bakken, and Eagle Ford oil- prone shale plays. We have been an early mover in the emerging opportunity in Nevada and have already amassed over 42,000 net acres of federal leases.
