SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 15, 2006
Commission File Number: 0-7914
BASIC EARTH SCIENCE SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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84-0592823 |
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(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer
Identification Number) |
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1801 Broadway, Suite 620
Denver, Colorado
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80202-3835 |
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(Address of principal executive offices)
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(Zip Code) |
(303) 296-3076
(Registrant telephone including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provision:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01. Other Events and Regulation FD Disclosure
On March 15, 2006 Basic Earth Science Systems, Inc. (Basic, or the Company) issued the press
release attached as Exhibit 99.1 reporting on the Company’s operational activities in McKenzie
County, North Dakota.
Basic reported successfully reaching the planned total depth on its previously disclosed LM #2, a
10,100 foot, vertical Rival test operated by Missouri Basin Well Service in McKenzie County, North
Dakota. During drilling operations a drill stem test was conducted that indicated that the Rival
interval was potentially productive. Wireline logs run at the conclusion of drilling yesterday
have confirmed these indications. However, rather than set production casing, the Company along
with its partners, have elected to seal-off this lower interval with cement. Basic, along with its
partners, are now repositioning the drilling assembly further up the well to have sufficient room
to take the wellbore horizontally into the Rival interval. Until both drilling and completion
operations are finalized the Company is unable to estimate what initial production, if any, the LM
#2 will deliver. However, by having both horizontal and vertical wells in this prospect, Basic and
it partners will be better able to evaluate future development strategies in terms of the reserves
and the rate of return that can be expected from alternative wellbore profiles. Basic has slightly
less then a 20% working interest in this well. The Company estimates having spent approximately
$200,000 to date on drilling costs and anticipates spending an additional $200,000 on horizontal
drilling operations.
The Company previously disclosed that the LM #2 well is on a 13,500 acre block in which Basic has
up to a twenty percent interest depending on the specific drill-site spacing unit. The Company
cautions that it is unlikely that this entire acreage block will be productive. The number of
wells that could be successful will depend on both the spacing requirements established by the
North Dakota Industrial Commission and more importantly, geology. However, if 320 acre spacing is
established, and if only 20 percent of the acreage ultimately proves commercial for development,
just 20 percent of the entire block could accommodate locations for up to eight wells.
Item 9.01. Exhibits
(C) Exhibits.
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Exhibit No. |
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Description |
99.1
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Press Release dated March 15, 2006 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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BASIC EARTH SCIENCE SYSTEMS, INC.
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Date: March 15, 2006 |
By: |
/s/ Ray Singleton
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Ray Singleton, President |
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