The company today said drilling of the Coal View Unit 31-4, which had been delayed earlier this week due to a strong winter storm, finally began yesterday.
The drilling by Cyclone Drilling Rig-16 had been delayed previously due to a shortage of trucking contractors, soft ground conditions and the steep climb to the location, which requires bulldozers to assist with the move.
CVU 31-4, the first well at Tow Creek, is designed to test three separate reservoir intervals in the Cretaceous-aged Niobrara Formation on the eastern flank of the Tow Creek anticline.
It will be drilled with a special aerated drilling mud system designed to minimise damage to the fractured reservoir.
The well is estimated to cost $US1.8 million ($A2.3 million) to drill, complete and equip.
CVU 31-4 is targeting gross recoverable oil reserves of 200,000-540,000 barrels of oil with upside potential in excess of 500,000bbl.
It is expected to take about 30 days to drill and another five to 10 days to complete.
Comet Ridge is operator of Tow Creek with a 37.5% interest.
Comet Ridge and partner, Colorado Strike Oil, a wholly owned subsidiary of Strike Oil, are each paying 50% of the cost of the first two wells, CVU 31-4 and Peltier 11-12, in the program. Thereafter the companies will pay their working interest share.
