Petrominerals Corp. of Foothills Ranch, CA, completed theacquisition of a 25% interest in a gas field in southwest Wyoming.Current production from the field is 700 Mcf/d (155 Mcf/d net) fromtwo active wells. The company has committed to participate in thedrilling of two additional wells by year-end and has identified twoshut-in wells it plans to return to production later in the year.
Petrominerals is buying an acreage position (1,500 net) and theoperator is currently adding to that lease position. Theacquisition also includes a field-wide gas gathering system withsignificant excess capacity. Estimated net reserves are 130 MMcfand 80 MMcf for the two producing wells and the two shut-in wells,respectively.
The field is in a prolific gas-producing region. Based on newgeologic mapping and modem completion technology, the companyexpects it could have a total of six to eight additional drillinglocations beyond the required initial two wells. Petromineralsestimates gross recoveries from these formations of 1.1 BCF (250MMcf net) per well based on offsetting production information.
“This acquisition is the first step in Petrominerals’ strategyto grow the company through well- placed, strategic acquisitionswith development potential,” said Morris Hodges, CEO. “It is ourplan to complete additional transactions of this nature in our bidto redeploy the proceeds from last year’s property sale.”
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