Sweet Grass Hills - West Butte, Montana

 

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SUPPORT FACILITIES - MONTANA

We have an office, shops, garages, and warehouse facilities at a camp about 20 miles north of Shelby, Montana, that includes the former residence of the family that owns Somont.

Our rolling stock includes two service rigs for servicing our wells, and a drilling rig just completing its modifications that will be used to drill most of the future wells we drill in the area. It is an old Ingersoll Rand Air Rig that is having its mast lengthened so that it can run range 3 casing.

Most of the oil wells drilled will be drilled with air and will be completed open hole with a single string of casing cemented to the surface. The casing will generally be 4" set above the Madison and then completed open hole with a 3 7/8" bit run off tubing from a service rig. In most instances, there will be no pressure problems because the drilling will occur in a pressure depleted reservoir. Some of the gas wells will be more complicated because they will require surface casing and blowout preventers and may have to be drilled with mud for at least a portion of the hole. Some of the gas wells may be beyond what we feel our capabilities are and for them we will hire appropriate drilling contractors.

We maintain two rig crews for our service rigs and expect that these same crews will be used on the drilling rig. In other words, when we are drilling wells we will generally have the service rigs parked.

We do our own acid work and buy mostly 32% HCL in bulk and use the acid, with appropriate chemicals, to regularly treat most of the Madison wells. Most of these acid jobs are simple dump jobs chased with formation water and appropriate chemicals.

We have our own foaming and coating equipment and create useable stock tanks and gunbarrels by taking old steel shells and coating them with material that is acid water resistant.

We have our own bulldozer, picker truck, road grader, backhoes, trenching machines, a vacuum truck, water trucks, oilfield trailers, a mud pump to use when appropriate in our drilling activities, and other miscellaneous equipment.

We are completing the modification of a piece of equipment that will be used to pump cement and pump acid under pressure.

We have two 900+ cfm air compressors that are used to clean out wells and can be used to supplement the compressor on the air rig when drilling

We also have a mud pump to use when appropriate in our drilling activities.

We have our own electrician and our own mechanics and do most mechanical work on all of our equipment, whether fixed or rolling.  For work beyond our capabilities we use qualified outside contractors.

Our local people generally interface with the local oil and gas regulatory body representatives including the Montana Board of Oil and Gas Conservation (MBOG) and the Bureau of Land Management (BLM) for Federal leases and surface issues and the Montana Department of Natural Resources (DNRC) for State leases and surface issues. We work very hard to maintain good relationships with these agencies.

We have throughout much of the field a sour gas gathering system that is used to supply heat to tank batteries in lieu of propane.  This continues to be gradually expanded with the eventual goal being to minimize the amount of propane we have to buy in the winter.  This gathering system is linked into the Morton Plant gathering system and so any extra gas produced in the field can be sent to the Morton Plant.

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