Blue Water Petroleum Corp. announced that the company began drilling operations on the # 31122 production well on August 7 in Big Horn County, Montana. Currently, the drilling crew is cementing surface casing in the well at a depth of 84 feet.

The # 31122 well is the 4(th) well to be drilled in the initial 5 well production unit, where steam is planned to be injected in a central well to drive oil to four surrounding production wells. The company has also received a Water Production Permit on the # 11-22 Tribal water well allowing for production of 4 million barrels of water over a 5 year period. The water will allow for production of steam necessary for the Blue Water Project to produce oil.