The fractured shale beds in the Pennsylvanian Paradox Formation are oil productive in the Paradox Basin fold and fault belt (northern Paradox Basin) of southwest Utah. The Cane Creek shale of the Paradox Formation is composed of marine carbonate, evaporite, and organic-rich shale beds. The Cane Creek is a fractured, self-sourced oil reservoir that is highly overpressured, an ideal target for horizontal drilling. Horizontal drilling, which increases the probability of encountering the near-vertical fractures, has resulted in numerous new field discoveries and has greatly improved the success rate in the Cane Creek play.
Current drilling by Delta and Fidelity has demonstrated oil and gas production from the Cane Creek in the area to the south of this prospect in the Greentown and Salt Wash Fields. Fidelity has a working interest in a number of sections co-owned by Dejour and is planning on drilling in 2010. To the east and North east of Dejour’s acreage is minor Jurassic Morrison and Navajo oil.
