Shares of Big Sky Petroleum (CVE:BSP) surged over 20 per cent Tuesday, after it announced the acquisition of a 90-per-cent working interest in 1,100 acres contiguous to its Midland Basin Wolfcamp prospect, increasing its total operated ownership in the area to over 3,400 acres.
The company said the Wolfcamp is a blanket formation across the Permian Basin of western Texas and acts as a source rock for much of the conventional oil production in the area. The depth of the Wolfcamp formation is around 5,000 feet on the normally pressured southeastern side of the play.
The latest acquisition follows on the heels of Big Sky's addition of 2,300 acres in December 2012, on which it drilled its first well.
"Due to the information we have accumulated from the Schafer No. 1 well, Big Sky is actively seeking to increase its acreage position within this Wolfcamp prospect," said president Sam Nastat.
Big Sky said it is in the process of flow back and testing of the Schafer well, completed last month, and will provide updates in early April.
The well was drilled to a total depth of 7,370 feet, and completed with a six-stage fracture stimulation.
Big Sky is an oil and gas exploration and production company with U.S. operations in Montana and Texas. It is currently focused on the development of unconventional tight oil reservoirs in the Southern Alberta Basin of Montana and the Southern Midland Basin in West Texas.
Shares of the company shot up 21.21 per cent as at about 3 p.m. EDT, trading at 20 cents.
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