Ameriwest Energy has acquired the Skull Valley Oil Exploration Prospect lands and has advanced the final $300,000 property payment to Geochem Exploration.
Under the terms and conditions of the bill of sale the property title, drilling permit and operational control will be transferred to Ameriwest Energy in the coming weeks. The agreement calls for Ameriwest to drill the permitted well, Skull Valley Federal 21-1 on or before September 1, 2008.
Exploration Technologies, a third party engineering firm from Houston, Texas, identified that the similarities between the structural style (slump blocks), geologic column (reservoir rocks), and geochemical anomaly between the Grant Canyon field and the Skull Valley Prospect suggest that with almost 5,000 leased acres (over 2,000 acres in the heart of the geochemical anomaly) a 25 million to 35 million barrel potential is a realistic possibility.
Walter Merschat, president of Ameriwest Energy, said: We are extremely pleased with the closing of the Skull Valley prospect as it represents the first of many acquisitions for the company. We are currently working to secure funding for the first well and expect to announce a drilling spud date in the weeks to come.