Sweet Grass Hills - West Butte, Montana


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We decided a long time ago that we do not intend to branch out geographically to any degree and so the business opportunities we seek are all close to our base of operations in north central Montana. What this means to our employees is that they nearly always sleep in their beds in their homes at night as our operations are generally confined to an area about 25 miles wide and 20 miles high.

In the years to come our primary activities will be to maintain our existing operations and gradually add additional oil and gas wells as our time and financial resources permit. We have approximately 200 idle oil well bores to evaluate and return to production along with many hundreds of infill locations (mostly oil but some gas) that can be drilled as time and financial resources permit. Virtually all of our acreage is held by production and so there will be little drilling necessary to earn leases.

All of our production is classified as “shallow”. There is a good deal of interest in the exploration of the underlying deeper horizons in the area. Most mineral estates and leases that we own are without depth restriction and so we will be considering farming out our deeper horizons in years to come to larger companies who want to look for deeper pays. At the present time it is not our intention to directly participate in such deeper exploration work but, rather, to back in to a minority working interest if such deep exploration work should be successful. We believe ourselves to have the largest acreage position in the area and so are well situated for any future deep exploration work.

We also have several candidates for potential waterfloods and, possibly, CO2 floods that will be considered in years to come depending on the human and financial resources that we have available. We may do some of these projects ourselves if we have the appropriate technical expertise in-house or may farm them out to third parties similarly to the deep exploration if we don’t feel we have appropriate capabilities in house.

We continue as a company to look for other producing oil and gas leases in the area similar to ours to incorporate into our business using the economy of scale.

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