Dec 8, 2022
Findings of Fact and Conclusions of Law and Order were issued by the Board of Oil, Gas and Mining of the Department of Natural Resrouces for the State of Utah in favor of Valkor / Heavy Sweet Oil
The order approves our proposed program of enhanced recovery to extract oil from heavy oil sands in the Rimrock and Asphalt Ridge Formations by injection of steam to increase the mobility of viscous hydrocarbons bound in the sand formations on SITLA lands near Vernal Utah.
We will initially drill four wells at legal locations within a 400-foot square window centered in each of the 40-acre quarter-quarter sections. Each Phase I well will be completed for both underground injection of steam and oil production. Wells will be drilled through the Uinta/Duchesne River Formation with completions in the bituminous sand zones of the Rimrock and Asphalt Ridge Sandstone Members. Steam will be supplied to the well head via a mobile steam unit and injected into
the bituminous zones to lower the oil viscosity and allow the extraction of the bitumen from the tar sand deposit. Operator plans to alternate steam injection with oil pumping in each well, injecting steam into the Target Formation until bitumen is fluid, pausing while bitumen flows toward the well, and then pumping the liquid bitumen to the surface.
In Phase II of the project, the Operator expects to drill 6 offsetting injection wells
on 2.5-acre spacing surrounding the Phase I well in a hexagonal pattern. The central well would then be used solely as a production well. This reduced spacing is not currently approved but is being sought in Q1 2023.