Overland Park, KS-based independent Infinity Energy Resources Inc. announced Wednesday that it has signed an agreement to appoint Haas Petroleum LLC as the operator of existing oil and gas production in Central Kansas that Infinity plans to buy from Core Energy LLC.
Infinity plans to buy 11,000 contiguous acres, which include one existing horizontal producing well, one horizontal saltwater injection well, one conventional saltwater disposal well and two conventional, vertical producing wells that tap the Reagan Sand Zone from a depth of roughly 3,600 feet. The purchase also includes existing equipment and 3-D seismic data on the acreage.
Haas will oversee day-to-day activities as Infinity moves forward with its plan to drill at least six conventional production wells following the closing of the acquisition.
The acquisition is expected to close by the end of the year, subject to Infinity obtaining adequate financing.
“Based on available data and subject to further analysis, we believe the Properties will provide Infinity the opportunity for significant discovery and development of oil & gas reserves that can be economically produced at relatively low risk with low lifting costs, in one of the more prolific basins in the heartland" said Haas Petroleum President Mark Haas.
Infinity announced in August that it had acquired an option to purchase the Central Kansas acreage from Core Energy for $2.5 million.
Kansas oil and gas production in 2019 has so far trailed 2018 production levels, extending a six-year for oil volumes and a 12-year decline in gas output, according to data from the Kansas Geological Survey (KGS).
Data from the Energy Information Administration shows July crude output in the state was 2.8 million barrels, down by 5% from July 2018. Gas output in Kansas has totaled 96.2 Bcf over the first six months of 2019, while 2018 production reached 202.3 Bcf, according to KGS.*
Correction: In the original article, the name of Haas Petroleum LLC was misspelled. NGI regrets the error.