The joint venture involves the Denton Field located in Denton, Texas. There are approximately 2000 acres with a potential of 50 wells. The field has 9 wells currently, with 4 wells producing.
With 3 confirmed pay zones, the Consolidated, Caddo Lime and Barnett Shale, the Consolidated has been producing for over 50 years. The Caddo Lime and Barnett Shale have not been touched and are commercially feasible in gas and oil. The Caddo Lime has 30 - 40 feet of pay sands, whereas the Barnett Shale has as much as 900 feet of pay.
Management stated, "Mitchell Energy reached its success through the discovery of the Barnett Shale and the reason this lease has not been developed was due to the fact that there wasn't a pipe line to sell through. However, in 2003 all easements and pipe lines were completed."
The Company further stated that reentry in the abandoned Barnett Shale and with new fracturing methods completed, production has gone from 100 mcf to as much as 175 million mcf. The Barnett Shale is being referred to as a "virgin" zone with an estimated 500 million mcf in place per well. According to independent petroleum engineer William Sawyer, "This lease could be a company maker."
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