Wyoming Projects

Mallard Project. Mallard project, located within the Overthrust Belt of SW Wyoming, is a sour gas and condensate exploration prospect in Uinta County, Wyoming. Mallard is within the Paleozoic trend of productive fields on the Absaroka thrust. Mallard directly offsets and is adjacent to the giant sour gas field of Whitney Canyon-Carter Creek. We interpret the Mallard prospect to occupy a separate fault block, adjacent to the Whitney Canyon field, generated by a complex imbricated system of faults splaying off of the Absaroka thrust. Paleozoic targets at the Mallard prospect include the Mississippian Mission Canyon, as well as secondary objectives in the Pennsylvanian and Permian sections.

The Company’s Mallard Project is located within the Whitney Canyon-Carter Creek field complex in the Overthrust Belt area of Uinta County, Wyoming. Of the more than 2.1 Tcfe that has been produced to date by all operators from this field, over 80% of the production is from the Mission Canyon formation, which is the primary producing formation of the #1-30 Duck Federal well. The #1-30 Duck Federal well is currently producing approximately 6.0 MMcf of gas, 90 barrels of associated condensate and 350 barrels of water per day. Production has improved since recently running a tubing string after an extended shut-in. Following the successful completion of the Duck well, the Company and its partners shot 23 square miles of 3-D seismic to define future drilling locations, and the data is now being processed. The Company has a 28.75% working interest in the #1-30 Duck Federal well and the 3-D seismic.

In addition, PYR and the other working interest owners have begun the process to re-enter and sidetrack the now-abandoned UPRC 25-1 well, located approximately 2400’ north of the Duck Federal. This well encountered the Mission Canyon approximately 400’ high to the Duck Federal, but failed to penetrate the main porosity zone due to steep dips. As a result, it produced only around 587 MMcf and 5000 barrels condensate prior to being plugged and abandoned by another operator in May 2001. PYR believes economic reserves can be found within the porosity zones, accessible via a sidetrack. The Company expects the rig becoming available in early spring, 2007.

The Company has also participated in road and location construction for the Teal #36-1 pending the outcome of the 3D survey.


North Stockyard Project. The Company has recently acquired a 20% working interest in 3116 gross acres in the North Stockyard Creek field in Williams County, North Dakota where the operator has used horizontal drilling techniques. It is anticipated that extended reach horizontal drilling can significantly improve the production rates of wells in this field. The Company’s first development well in the North Stockyard Creek field, the Harstad #1-15H, has been drilled to a depth of 10,000’ to evaluate the hydrocarbon potential of the Bluell formation. The Company has determined that the Bluell zone is capable of commercial production and intermediate casing has been set in the curved portion of the hole. The zone will then be horizontally drilled in a southeasterly direction to a maximum of 5,800’. With a successful completion of this well, the Company expects that additional development wells may be drilled on the acreage in which the Company has an interest.