Bayhorse Silver Executes Farm-In Agreement on Williston Basin Oil & Gas Prospect - Video News Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - November 7, 2014) - Bayhorse Silver (TSXV: BHS) has executed a letter of intent with Saturn Minerals, whereby Bayhorse Silver can earn 50% of Saturn's 50% interest in the 253,920 acre EP-71, the Little Swan oil and gas prospect in Saskatchewan's northern Williston Basin. Williston Basin is a large sedimentary basin beneath Saskatchewan, Manitoba, Montana and North Dakota.
InvestmentPitch.com has produced a "video news alert" which provides a brief overview of the company. If this link is not enabled, please visit InvestmentPitch.com and enter "Bayhorse" in the search box.
If you cannot view the video above, please visit:
Bayhorse will be required to make equalization payments to Saturn totaling $600,000, issue 500,000 shares of Bayhorse and assume Saturn's 2014-2015 seismic costs on Little Swan for $230,000.
The northern Williston Basin is underlain by a thick succession of sedimentary geology with many of the same formations hosting oil and gas in the central and southern parts of the basin. Exploration of the northern Williston Basin is revealing increasing potential for the same and similar oil systems.
An aerial gravity-magnetic survey consisting of 1,600 line-kilometres, with 300 metres spacing was undertaken in mid-2012 over the Little Swan lands. The results showed basement structures exceeding 1,000 metres in depth.
Saturn estimates that, based on the seismic knowledge gained to date, oil bearing systems may be found as deep as 1,200 metres. Drilling to that depth is estimated to cost $500,000 per vertical well, and neither fracking nor horizontal well development is anticipated.
Commenting on the potential economic model of a prospective discovery in this part of the Williston Basin, Stan Szary, CEO of Saturn stated: "The much lower costs of drilling a vertical well, and other associated benefits such as lower royalties applied to new discoveries, mean the netbacks on production from this area would be much higher than from deeper, non-conventional wells which require horizontal drilling and fracking. The recent strength of the US dollar against the Canadian dollar also enhances the economic model for this area."
Bayhorse is earning an 80% interest in its recently acquired historic Bayhorse Silver Mine that management believes has the potential for a substantial silver discovery. The company also has a 100% interest in three high grade gold prospects, in the highly prolific West Coast South Island gold fields of New Zealand.
The company has a 30% Net Profit Interest in the Flagstaff barite mine in Washington State, where work is currently in progress. The majority of barite production is used in drilling oil and gas wells.
Graeme O'Neill, Bayhorse President and CEO stated: "With this acquisition the company now has three sources of potential near term revenue. Production from the Bayhose silver mine, the 30% NPI in the Flagstaff barite mine, and now the potential for development of the Little Swan oil lands in the Williston Basin."
The company is trading at $0.06, and with 20.8 million shares outstanding, the company is capitalized at $1.2 million.
InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing short three minute videos based on significant news releases and research reports.
Barry Morgan, CFO