The Oil & Gas Asset Clearinghouse sold more than $18.2 million in properties at its hybrid auction in May, which offered 113 lots across the country. Approximately 260 registered bidders competed on the properties, with 30% bidding on the Internet. The Clearinghouse’s hybrid auction process allows Internet bidders the opportunity to compete simultaneously and on a real-time basis against floor bidders. Some of the notable properties were sold to Geodyne Nominee, the Jay-Lec Unit in Florida, $750,000; Swift Energy, North Creole and Broussard Field in Cameron Parish, LA, $500,000; Giddings Field in Fayette County, TX, $575,000; John Mecom III et al, Second Bayou Field in Cameron Parish, $1 million; Lance Ruffel Oil & Gas, Golden Trend Field in Grady County, OK, $2.5 million; Noble Energy, Algoa West Field in Brazoria County, TX, $600,000; Cosmonaut Field in Fort Bend County, TX, $1.4 million; Sugar Valley Field in Matagorda County, TX, $625,000; Mission Resources, Buna Field in Jasper County, TX, $725,000. The next hybrid auction will be held on July 14 at the Sheraton North Houston Hotel in Houston. Information on the upcoming auction may be found at www.ogclearinghouse.com.

Junior independent Lexington Resources Inc., which focuses on exploration in the Arkoma Basin, said its Kyndal #2-2 coalbed methane (CBM) gas well reports initial flow rates of 500 MMcf/d from the Hartshorne Coal target producing zone. The well feeds directly into the prospect’s existing pipeline infrastructure. Although gas quality is not yet determined, management estimates that gas quality will be similar to the Kellster 1-5 well that averages approximately 0.94-0.95 Btu factor gas. The Kyndal #2-2 is the second of four to five horizontal gas wells that are to be drilled on the company’s Wagnon lease located in Pittsburg County, OK. The Kyndal #2-2 well is undergoing dewatering processes predictable to CBM gas wells that can incline in production once dewatering phases expose further gas-producing reservoir rock. Other horizontal CBM gas wells in the area are reporting reserve estimates up to 0.7 Bcf per well.

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