VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Bayhorse Silver Inc. (TSX VENTURE:BHS) (the "Company" or "Bayhorse") is pleased to report that Saturn Minerals Inc ("Saturn") has announced that it has received a proposal from its Bannock Creek Property Joint Venture Partner ("JV Partner") in Saskatchewan's northern Williston Basin (Petroleum Exploration Permit 72) for a 4 well drilling program, commencing July 2015.
Bayhorse CEO Graeme O'Neill comments, "As Bayhorse is farming-in for 25% of Saturn's adjacent 400 square mile Little Swan light oil and gas prospect, a successful oil well at Bannock Creek may be a significant event for Bayhorse."
The first proposed well is to re-drill the 9-5 Bannock Creek Exploration Well location as reported in Saturn's news release of May 19, 2015), with additional wells to follow.
Saturn's JV Partner has stated that it has arranged a funding facility for the initial 4 well program. Saturn's CEO Stan Szary stated, "This is very encouraging for us in that we now appear to have a viable JV Partner with funding in place that can significantly de-risk the financing of the play. A multiple well exploration program further de-risks the play. With the seismic data acquired to date and the information from the initial 9-5 Bannock Creek Exploration Well, we look forward to the next stage of exploration at Bannock Creek".
Saturn states that the exploration oil well program has been proposed by the JV Partner following the recently completed 2D seismic program, which was designed to identify and confirm closure for potential light oil traps in the stacked Red River, Winnipeg and Deadwood Formations of the Northeastern Williston Basin. The exploration wells will be drilled and completed conventionally to a depth of less than 1,000 meters. The JV Partner has surveyed a total of 10 locations and has an option with its drilling contractor to drill an additional 6 wells at Bannock Creek.
Saturn's JV Partner estimates initial production rates of a successful well could be ranging between 100 to 150 barrels per day per well and estimated total netback of approximately $35 CAD per barrel at the current oil price level.
The proposed wells are estimated to cost approximately $830,000 CAD per well to drill, tie in and complete. Based on a 50% interest the costs for Saturn would be approximately $415,000 CAD per well.
Graeme O'Neill, Bayhorse CEO comments, "This announcement is very good news for Bayhorse, which is farming in from Saturn for a 25% interest in the Little Swan light oil and gas prospect, immediately adjacent to the Bannock Creek project. Any successful well drilled at Bannock Creek can only enhance the prospects for Little Swan, where seismic results are pending."
Bayhorse Silver Inc. is a junior exploration company holding a Farm-In Agreement with Saturn Minerals to acquire a 25% interest in the Little Swan oil project in Saskatchewan, Canada. It is earning an 80% interest in the historic Bayhorse Silver Mine in Oregon,USA that has the potential for a substantial silver discovery. It also has a 100% interest in its major high grade New Zealand gold prospect (Alexander River), in the highly prolific West Coast South Island gold fields of New Zealand, which offers investors the potential for a major gold discovery The Company continues to retain a 30% Net Profit Interest in the Flagstaff barite mine in Washington State, USA.
The Company has an experienced management and technical team with extensive exploration expertise. This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.
On Behalf of the Board
Graeme O'Neill, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Graeme O'Neill
President
604-684-3394
www.bayhorsesilver.com