- Black Mountain Energy (BME) adds new contingent resource to its Half Moon prospect in the Permian Basin in New Mexico, United States
- Half Moon’s ‘best’ estimate contingent resources stands at 1,564,000 boe, while its ‘high’ estimate is 3,366,000 boe
- If the company’s MIA 64 FEE 2H well aligns with its best estimate numbers, it will look to convert the resources into a reserves category
- Drilling commenced this week at the MIA 64 FEE 2H well, with production expected in 90 days
- BME shares were trading at 2.3 cents at market close
Black Mountain Energy (BME) has added new contingent resources to its Half Moon prospect in the Permian Basin in New Mexico, United States.
The company added the first reported contingent resources from the third Bone Spring (3BS) interval.
Half Moon’s “best” estimate contingent resources stands at 1,564,000 barrels of oil equivalent (boe), while its ‘high’ estimate is 3,366,000 boe. The “low” estimate totals 561,000 boe.
The company announced it has formed a 3538-acre working interest unit (WIU) with its partners. The unit includes 416 acres from BME.
BME also plans to structure a field development plan (FDP).
The company reported that a “reasonable” FDP held the potential to produce up to 20 horizontal wells drilled and fracture stimulated across its northern interest.
“Having a development plan, a drilling well inventory and booking our first contingent resources are important milestones that have been accomplished in short order on the Half Moon prospect,” BME Executive Chairman Rhett Bennett said.
BME began drilling this week, designed to appraise the 3BS interval, highlighting it as a “material step forward” to unlock the full potential of the Permian Basin.
Production is anticipated in 90 days, and BME’s acquired appraisal data will ultimately help steer its FDP.
The project is estimated to cost US$12.3 million (A$18 million) to drill, fracture stimulate, complete and tie-in. BME has put forth approximately US$1.4 million (A$2.1 million).
BME announced that if the performance of the MIA 64 FEE 2H well aligns with its best estimate numbers, the company would then look to convert resources into reserves categories.
Meanwhile, the company reported it continues to mature technical work streams on its remaining acreage, as it investigates potential resources within other intervals, such as the 2nd Bone Spring interval.
BME shares were trading at 2.3 cents at market close.