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Virtus Oil and Gas f/k/a Curry Gold Corp (VOIL) – A Punt On An Old School Oil Exploration Play

July 20, 2014 | About:

To be successful in the hunt for emerging opportunities you need to look where nobody else is looking. Virtus Oil and Gas (VOIL) isn’t doing just that, it is also looking for something nobody else is looking for these days.

Virtus Oil and Gas is on the hunt for a big oil discovery (rather than a shale play) inside the United States.

American oil production has been rocking and rolling for half a decade.

The source of all of that new oil production is the development of shale oil using fracking.

While fracking booms, the amount of oil being produced from old school vertical wells inside of the United States continues to decline. The reason for that is not because oil companies prefer shale oil, it is because over the past century the industry has drilled up virtually every old school oil opportunity.

Given the opportunity oil companies would much rather be developing an old school oil property instead of shale oil. That is because old school oil costs $20 to $30 to find and develop while the average shale play costs $70 plus.

When it comes to oil it is all about take what you can get, not get what you want.

Virtus Oil and Gas is a small company that is looking for one of those old school, big barrel, non-shale oil plays. These boys appear to be hunting for something significant.

Headquartered in Houston, Texas, Virtus Oil and Gas was founded in 2013 with the mission of acquiring and developing onshore oil and gas working interests in proven basins in the United States, such as the Central Utah Thrust Belt Region.

The Virtus Oil and Gas corporate strategy is based on the following fundamental principles:

· Acquire oil and gas properties that give them a majority working interest and operational control

· Maximize the value of their properties by increasing production and reserves while controlling costs

· Utilize a highly experienced team of geologists, engineers, and landmen

· Remain focused on proven reserves located in major basins in North America

It sounds like a great plan, but at this point it is really nothing more than that…a plan.

The company has drilled zero wells, has zero barrels of booked reserves and has yet to disclose how it will finance those efforts. There are lots of questions yet to be answered.

What the company has accomplished is assemble a decent team to lead its efforts:

Brett A. Murray
Chief Operating Officer

Brett A. Murray worked for Gunnison Energy Corporation an Oxbow Company owned by William Koch in 2012 as Land Manager. Prior to GEC, Mr. Murray spent time with Phil Anschutz’s private company, Anschutz Exploration Corporation where he was heavily involved in the $1.4B divestiture of the company’s Southern Bakken properties and as well as its $114MM Northern Bakken property sale. Murray went to work at Sundance Energy, Inc. in 2008, and was promoted to Land Manager at age 27. While at Sundance, he was involved with multiple divestitures and business development of nearly 150,000 acres and nearly $80MM in transactions. At Anadarko he was a company landman that worked on curative issues before drilling in the Wattenberg Basin. Murray started his land career as a field landman in Northeastern Colorado. He was the main lease buyer for Tecton Energy where he had leased near 100,000 acres in the Albuquerque Basin, New Mexico.

Dr. Robert Benson (Bob)
Exploration Director

Dr. Robert Benson has had nearly forty years of exploration, development and management experience in the energy industry. He obtained his BSc in Geophysical Engineering and his MSc and PhD in Geophysics from the Colorado School of Mines in 1976, 1984 and 1997, respectively. A major focus of Benson’s work includes seismic data acquisition, processing and interpretation, in both the Rocky Mountains and worldwide. He has worked extensively in reservoir characterization with emphasis on multi-component, 3-D and 4-D seismic methods.

In addition to having a decent looking team Virtus Oil and Gas has (on paper at least) an interesting looking prospect to drill.

Here is how Virtus Oil and Gas describes its main asset:

The prospect is comprised of a 55,477 acre tract in the Central Utah Overthrust (CUO) region of southwestern Utah, in Iron County.

The prospect is located approximately 80 miles south of Wolverine Gas and Oil’s Covenant Oil Field, also located in the CUO region, which has produced 3.1 million barrels of oil (MMBO) in Utah from structures and reservoir horizons. Potential for the discovery of a similar field within this southern portion of the overthrust belt is suggested by structural interpretation of a large seismically-mapped 4-way structural closure.

The Covenant Oil Field exhibits closure over approximately 11,000 acres with about 400 feet of pay in the Navajo, thus allowing a projection of nearly one billion barrels of oil within that field. A similar structure lies on the Parowan Prospect Iron County leases, with a potential for an oilfield of similar order of magnitude, particularly when multiple prospective horizons are considered.

Virtus Oil and Gas Corporation controls 55,477 acres in the Iron County section of the thrustbelt play. It has agreed to drill a 12,000 foot deep test well to evaluate the Navajo, Kaibab, and Permian Queantoweap Sandstone within 2 years.

Virtus plans to complete an analysis of the potential reservoir rocks, source rocks, structural traps, and reservoir sealant horizons, leads to a recommendation to refine structural parameters with a review of seismic work, and possibly some more geological detail and gravity surveying, followed by drilling of a test well.

Test well drilling is tentatively scheduled to commence by September 2015.

There aren’t any typos in the above description. The company is claiming to be chasing something that could have close to a billion barrels of oil. A person would likely want to make note of the word claim and the word could in the preceding sentence. Again, this is very early days for this company.

On a first look it is hard to know what to conclude about Virtus Oil and Gas. The people involved and the numbers that the company is throwing about are certainly interesting. Whether any of this ever amounts to anything of true value is however completely unknown.

Either way Virtus is an emerging opportunity worth watching. In a world where a barrel of oil fetches $100 an old school oil discovery is very valuable. Especially if it is a big one.


Rating: 5.0/5 (1 vote)

Voters:

Comments

LailaG
LailaG - 5 months ago

I have been watching Virtus Oil and Gas company closely and recently read the research report by Gustavson Associates detailing the potential for oil in the Utah land. I have hopes for this company but am a little nervous that they only plan to drill just one well. However, it is a proven basin and many say that contrary to my anxiety, it’s the right move to go with the one well. They do have a completion date for Sept 2015.

Its obviously a risky stock. Keep in mind the company has limited assets and no historical revenue. Yet, despite the fact that investors have abandoned most natural resources, oil continues to hold about $100 per barrel. Personally, I am intrigued by the high returns and think the company will tap into a sizable reservoir. I also think they have a solid business plan and are led by an outstanding team. However, I am a risk taker.

DAnderson
DAnderson - 5 months ago

It is common knowledge that most old-school gas opportunities are dried up, and that is the first thing that comes to mind when hearing of this company. Once you dig deeper into its composition, however, this is an impressive crew of folks who certainly know better than common knowledge. The likelihood of finding old-school oil may be slim, but the rewards were there to still be a resevoir waiting to be tapped would be enormous. It will naturally be quite tempting for risk takers.

Jolene10
Jolene10 - 5 months ago

This is interesting because Virtus Oil and Gas is a company that is going to go out of their way to do old school oil properties. If they are successful, it will be quite cheaper to find and develope than shale oil. Although, no wells have been drilled yet, they a team put together and a prospect to drill. We will just have to wait to see what becomes of it.

moz.fangirl
Moz.fangirl - 5 months ago

I have had a lot of concerns about fracking, and I think a lot of other people do, too. I can see where this company might be able to drum up a lot of interest in their old school approach. My father in law is a geologist who has told me a lot of good things about the Colorado School of Mines, so it seems to me that Dr. Benson has a trustworthy background. I will be curious to read more about Virtus in the next months.

JessTw91
JessTw91 - 5 months ago

I would be interested to see where this company is in a couple years. For such a young company, they do seem rather confident, don't they? It certainly doesn't seem like other companies are using the same tactics as Vitrus. It would also be interesting to hear from extremists from both sides on this.

briana
Briana - 4 months ago

I’m not surprised if the American oil production has been rocking and rolling for half a decade. It is due to continuous productions of vehicles and machines that use oil for the sake of evolving world economy and technology. Even if this can symbolize improvement, not everybody takes it positively especially when it comes to fracking for oil. Fracking for more oil can help us in our oil demands but are we doing something good for the environment? Environmentalists are against fracking but it could not be stop due to overwhelming oil demands. The discovery for oil substitute such as bio-fuel discovery is still going so that fracking will be avoided.

VOIL has given the opportunity to be one of the booming companies in the oil industry. They are creating more space for their business growth. Their innovative characteristics and the choice to use non-shale oil will hopefully lead to company growth and success. The one year of VOIL in the industry is something that can lead into future growth and more ventures using the strategies that they have acquired for more than a year. The achievement of this company is impressive too despite the fact that the competition is high and they are new. Although as the innovation of bio-fuel is coming for the next few years, I will not be surprise if VOIL will someday make it as one of the top in the oil industry.

bjbig69
Bjbig69 - 4 months ago

Look at the Google Streetview of VOIL world headquarters.

1517 San Jacinito St., Houston TX

It is the basement of a used bookstore. Scam? Pump n Dump? "invest" wisely my friend

GeoDubyahLozer
GeoDubyahLozer - 3 months ago

I have worked hard for my money - I plan on keeping it. I will pass on this opportunity.

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