Update On Reef Oil & Gas

Earlier I posted a note regarding Reef Oil & Gas. The company was nice enough to forward me a copy of the full press release, dated March 17, 2014:

Reef Oil & Gas Companies announces favorable results of recent drilling operations in the Bakken-Three Forks formation in North Dakota.

These operations are part of the initial phase of the Reef Oil and Gas Drilling and Income Fund, L.P. We are pleased with the results of the funds first project, says Michael Mauceli, CEO of Reef.

The first six wells have been drilled and tested and we are now in the completion phase, he continues, and although we are still in the early stages of this program, we anticipate achieving positive results throughout the entire drilling operation. Conoco-Phillips has completed testing of the projects first six wells and is currently running production tubing and installing the production facilities.

Initial oil production test rates have been published for three of the wells at 2,312 and 2,592 and 2,880 barrels per day and a combined natural gas test rate of more than 10 million cubic feet per day.

These operations are part of a Reef-sponsored partnership called the Reef Oil & Gas Drilling and Income Fund, L.P., which was formed to drill and own interests in oil and natural gas properties located in the United States with a focus primarily on the Bakken-Three Forks in North Dakota.

The primary purpose of the partnership is to generate revenue from the production of oil and gas, and provide partners with cash distributions and available tax benefits.

Within the last few years, Reef has taken advantage of several opportunities to make acquisitions in the Bakken-Three Forks.

Reef and its partnerships own interests in more than 10% (822 wells) of all wells drilled to date in the Bakken-Three Forks. Reef and its partnerships have also participated in the drilling of more than 400 wells in the Bakken-Three Forks since the fourth quarter of 2011. The Bakken-Three Forks formation is one of the largest contiguous deposits of oil and natural gas surveyed by the U.S. Geological Survey (USGS).

That's pretty impressive: more than 400 Bakken-Three Forks wells since 2011. And it's pretty impressive that Reef owns interests in more than 10% of all wells drilled to day in the Bakken-Three Forks. I would assume that means Reef is "partnering" with more operators in the Williston Basin than just COP (BR).

A big "thank you" to the company marketing director to send me the press release.  It is much appreciated.