Virtus Oil & Gas is planning to drill a well on acreage in an underexplored region in Utah that potentially holds over 260 million barrels of oil.
The small but ambitious Houston-based oil and gas exploration company has high hopes for its Parowan Project. The 55,477-acre plot resides in the heart of Utah’s oil-rich Overthrust region in Iron County. According to a press release from Oilprice.com, if successful, their 12,000-foot deep test well is scheduled to begin Sept. 2015. Virtus estimates the cost for drilling, completing and testing to be roughly $2.5 million.
The optimism over Utah oil production began over a decade ago. In 2003, the tiny Michigan-based Wolverine Gas and Oil Corporation, which wasn’t even considered a junior player in oil exploration, made one of the largest U.S. oil discoveries in 30 years. Since then, Utah’s oil production has increased 166 percent and reached 96,000 barrels per day in 2013.
The discovery happened in Utah’s Covenant Field. To date, the Covenant has produced over 19 million barrels of oil. Wolverine alone has 26 producing wells in the Covenant Oil Field, and extracted more than 2.2 million barrels in 2012.
The original detection of Utah oil foreshadows promising results for Virtus Oil & Gas. Its plot resides just 80 miles south from Wolverine’s landmark find in the Covenant, and only eight miles from where Delta Petroleum found favorable oil indications just a few years ago.