Saskatchewan Overview
Canada is the largest supplier of oil to the United States. With both an established infrastructure and a close proximity to the US, Saskatchewan ranks 2nd among Canadian provinces supplying oil to the US market. Mogul has placed a particular emphasis on exploration of the Bakken Formation in the Fairlight area of Southeastern Saskatchewan.
South East Saskatchewan, Canada
The Fairlight area of Southeastern Saskatchewan is highly prospective for light oil (41 API). The shallow Devonian-Birdbear Dolomite reservoir located 12 miles southwest of Fairlight (Parkman Field), and four oil wells located 0.5 miles southwest (Chevron) are all in production.
While uneconomic, 2 other shallower Bakken targets in the area tested the same type of light oil. The Mississipian-Lodgepole Carbonates (Sourice Valley) and the Devonian-Bakken Sands and Shales are prolific producers in North Dakota on the Montana side of Williston basin and in South East Saskatchewan. Currently, there are 4 producing wells in the region (Sec. 33-10-32 Birdbear) that are currently owned and operated by Chevron. In the October 6, 2005 Land Sale conducted by the Province of Saskatchewan the highest price received for a single parcel was a bonus bid of over $2.5 million. Scott Land and Lease Ltd., on behalf of an unknown party, purchased this 23-sections exploration license located near the town of Fairlight in the southeast part of the province. In addition, in the December 8, 2005 Land Sale conducted by the Province of Saskatchewan the highest bonus paid for a single parcel was over $1.3 million paid by Whitland Consulting Inc., on behalf of an unknown party, to purchase a 25.25 sections exploration license in the Fairlight area of southeastern Saskatchewan.
| The drill program for Mogul’s South East Saskatchewan properties now consisting of approximately 9,300 acres will primarily test the potential of the three shallow reservoirs of Birdbear, Lodgepole and Bakken.
Production from each of the above mentioned three shallow targets can range from 25-100 barrels per day per well, with potential recoverable reserves at least 400,000 barrels.
Fairlight Overview
On January 24th, 2007 Mogul acquired 25% of Mogul Energy Ltd.’s interest in the Freehold Properties as well as TransPacific Petroleum Corp.’s 25% interest. Mogul now owns a 100% interest in the approximately 9,300 acres of oil and gas leases located in the Fairlight area of South East Saskatchewan, Canada, also known as the Freehold Properties. Mogul is also the sole operator of the Freehold Properties.
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