Williston Basin
Zargon has a long and profitable history in the Williston Basin core area, which encompasses a portion of southeast Saskatchewan, southwest Manitoba and three counties of North Dakota. The area holds 53 percent of Zargon's proved and probable oil and liquids reserves and accounted for 51 percent of oil and liquids production in 2010. Zargon has a large inventory of Mississippian horizontal oil locations that will be the focus of drilling for the next three years. These wells will augment primary depletion schemes in some pools, or will be drilled to optimize waterfloods.
Zargon's 2010 drilling program targeted pool extensions in the Steelman and Manor (Frobisher-Alida) areas. In 2011, activity will also focus on Midale targets at Weyburn and Elswick where reservoir studies show horizontal drainage wells will increase oil recoveries. Additionally, multi-frac horizontal wells are unlocking Mississippian and Bakken/Torquay opportunities at Daly, Workman and Fertile. In North Dakota, geotechnical and reservoir studies should lead to additional drainage wells at the Mackobee and Truro properties, plus waterflood rebalancing at the Haas property.