Lighthouse Petroleum Inc., Salt Lake City, UT, (Pink Sheets: LHPT) says the first drilling location on the Diamond Springs prospect has been determined and drilling permits have been filed with the Bureau of Land Management.

G2 Petroleum LLC, the operator, plans to drill a well at 800 feet targeting the Dakota, Lakota and Morrison sands. According to the third-party assessment provided by C.P. Abrassart, the Dakota sand may yield 270,000- to 540,000 barrels of oil and 2.7 million- to 5.4 million cubic feet of gas. The Lakota sand may yield 496,000- to 993,000 barrels of oil and 10.8 million- to 21.6 million cubic feet of gas.

The estimates cover the North Diamond Springs prospect and do not include reserves associated with the other two portions of the drilling prospect. Based on 40-acre spacing, 27 wells are possible on the North Diamond Springs portion of the prospect.

Lighthouse chief executive officer Paul Norat says, The science that has been performed on this location is very compelling. Initially, we spent much time deliberating about purchasing this Working Interest in this project but were eventually convinced that the [third-party] data had enough evidence behind it that some sort of a geological trap might exist on this acreage One can see where the initial location is proposed by the geologist and how that is in line with what the geosensing data is suggesting.

The Diamond Springs prospect is composed of three independent but geologically similar prospective locations within a 3,300-acre tract. West of Casper, Wyo., in the Sweetwater Mountains, this prospect is adjacent to both the Wind River Basin and the Casper Arch in Fremont County and is in close proximity to productive gas and oil fields.

Lighthouse is focused on acquiring oil and gas assets in the Williston, Permian and Wind River basins.