Whitetail/Blacktail Area Update, Billings Co.

Continental Res. plans new development in the Blacktail area and has obtained permission to establish a 1280 drilling unit in secs. 16 and 21, T144-R99 in Billings Co. The company also requested two 1280 acre drilling units in secs. 3 and 10, and 4 and 9, T143-R99 in the Whitetail Field area, but the company asked that these two requests be dismissed. These latter two units are just east of the recently drilled Thompson Bakken well by Kerr-McGee in section 8, and a high volume Red River gas well on the Yourk lease in SE of sec. 9 that was drilled by Amoco in the late 70s, and which only produced for a few years before being abandoned. It is possible that these cases were dismissed because Kerr-McGee owns the majority interest in these tracts and may plan to be the operator if/when they are developed.

The planned Bakken well to the north is in the old Blacktail Field, a one well marginal Madison field discovered in the early 60s by Hunt Oil. A number of offsets turned out to be dry and the remaining well was plugged shortly thereafter. The overall area is just north of St. Demetrius Field where Continental is currently drilling the Malkowski 1-35H in sec. 35, T143-R99. In any event, there is some interesting geology in the area.