Nextraction has engaged the services of Geokinetics USA to conduct a 2-D seismic acquisition program on the Company's Pinedale property located on the northern Pinedale Anticline, Wyoming, USA. The Company has also acquired 11 square miles of three dimensional (3-D) seismic data for the project area. The seismic information will greatly assist the Company in selecting future well locations on its property leases.
The seismic data will define structures, interpret sand thicknesses and enhance the Company's ability to locate optimum sub-surface targets. The Company anticipates spending $280,000 for the entire 2-D seismic program and anticipates the data will prioritize the 30+ possible well locations on the current well super pad. Drilling will follow the collection and interpretation of the 2-D and 3-D seismic data, with each well projected to cost $5.5-$6.5 million dollars.
Nextraction has also assumed operations of the project from joint venture partner Vantage Energy, LLC. Nextraction and Vantage share ownership in 2,600 acres of the Pinedale Project leasehold and Nextraction owns 100% interest in an additional 1,174 acres, capable of supporting up to 31 additional wells.
Mark S. Dolar, President of Nextraction stated, "After completing the Noble 6-24 well and sharing data with area partners, we determined that seismic data would be the logical tool to enhance our project development along the Anticline. Becoming the project operator is also an exciting and necessary step as it enhances our ability to maximize revenue and control further development. Our first well is a great success for us, as we are producing liquids-rich gas, generating revenue, and have proven the extension of economic production along the Anticline within our lease position."
Nextraction recently completed the upper productive zones in its first well, the Noble 6-24, in December and issued an initial flow rate of 3 million cubic feet of gas (cfg) per day. The lower zones were completed in July, 2010 and had an initial flowing rate of 1.1 million cfg and 29 barrels of condensate per day.
Mr. Dolar added, "Production equipment originally placed at the well pad could not produce in excess of 500 thousand cfg per day. As operator, we are situating new equipment on location capable of managing pressures at the well head and pipeline intake to enhance production. By increasing production from the Noble 6-24, and adding new development wells after the seismic program is completed, our objective is to quickly advance development of what may be over 80 billion cubic feet of gas (net) to the Company.
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