Momentum is described in the dictionary, “as the amount of motion occurring in something that is moving, or the force that drives something forward to keep it moving”. Momentum seems to be what Petro River Oil (PTRC) is experiencing now. They have announced a third well to be drilled in as many weeks with success already coming from the first two. These discoveries seem to be the force that drives the company’s momentum fueled by geological experience and the use of 3-D seismic technology focused on an historically prolific oil field.
Previous announcements this month outlined a basic strategy of evaluating 3-D seismic data and drilling discovery wells. The first two successes for Petro were the Chat 2-11 and the Red Fork 1-3 wells on its Pearsonia West Concession in Osage County, OK. The third well is the Henderson 1-30 drilled this week. These three structures that the Company has identified have a potential for 2.5M barrels of oil from cost efficient vertical wells at depths of approximately 2800 feet. Petro will create scalable and repeatable opportunities like these wells spanning over 106,000 acres in the Osage County, alone.
If momentum is a component of success then Petro River’s future may continue to yield discoveries as it expands its focus to their 7,000 acre projects in Kern County and Grapevine in California. These properties have shown greater potential then Osage. Petro’s near term business plan of expanding its de-risking conventional drilling technology warrants continued monitoring as ongoing success drives business and market momentum.