LONDON, January 12, 2015 /PRNewswire/ --

A sweet spot in Saskatchewan's prolific Williston Basin - the best wildcat location in North America - could shape up to be the next big oil discovery in this final frontier, but the real news in this uncertain oil market is that it's cheap to drill so the risk-to-reward ratio is uniquely favorable.

This patch of massive potential is Little Swan - a multi-stacked 253,000-acre oil and gas prospect in an area of massively successful wildcatting for which Bayhorse Silver Inc. [http://www.bayhorsesilver.com ] (TSX Venture: BHS [http://finance.yahoo.com/q?s=bhs.v ]) has entered into a farm-in agreement [http://www.newsfilecorp.com/release/12418/Bayhorse-Silver-Executes-FarmIn-Agreement-on-Williston-Basin-Oil-Gas-Prospect-Video-News-Alert-on-InvestmentPitch#.VJqQ2F4BA ] with Saturn Minerals Inc. for a 50% interest.

The Williston Basin will soon be producing 2 million bpd as new wells come online, and this basin hosts the booming Bakken, where top producers [http://g.foolcdn.com/editorial/images/6886/producers-bakken_large.jpg ] such as Conoco Philips (NYSE:COP), EOG Resources (NYSE: EOG) and Marathon Petroleum (NYSE:MRO) are operating.

Little Swan is situated in the Northern Williston Basin - an extension of the oil bearing formations of North Dakota and Montana - and Bayhorse is eyeing light sweet crude oil as deep as 1,200 meters.

The real attraction here is the cost: With dire oil prices, investors seek something highly prospective, but cheap to drill. This is where Little Swan stands out because there is no need for expensive horizontal wells or fracking.

Drilling to 1,200 meters vertically will cost only $500,000. Operating costs could come in as low as $20/barrel. Little Swan promises higher netbacks on production than any other new prospect on our radar.

Bayhorse is a good bet all around, with smart diversification protecting investors against oil uncertainty. The company now has three sources of potential near-term revenue: Williston Basin oil, a highly prospective Oregon silver mine [http://www.stockhouse.com/opinion/interviews/2014/02/12/bayhorse-silver-(v-bhs)-focusing-on-shareholder-va ] in a prolific silver belt, and three high-grade New Zealand gold prospects.

The company provides top value for shareholders. Over 55% of its 21 million issued shares are held by 10 shareholders, including CEO Graeme O'Neill, so management has a significant interest in ensuring long-term success.

Indeed, over the past four years, Bayhorse has delivered shareholders two dividends in the form of spin-offs. For every four Bayhorse shares held, shareholders received one new share in a new company-a 25% share dividend.

But the window of opportunity for investors is closing.

By James Burgess of Oilprice.com [http://oilprice.com ]

SOURCE Oilprice.com