In conjunction with increasing well drilling frequency, Lexington Resources is in negotiations for additional tracts of prime acreage in the CBM producing domain of Oklahoma's Arkoma basin. The Company is working to successfully conclude negotiations in the near term so that larger scale drilling initiatives can increase cash flow and further prove the Company's business development model.
About the Drilling Play: The drilling site is located in the Hartshorne coal zone fairway of the prolific Arkoma Basin, in the middle of one of the largest CBM drilling programs undertaken in the State of Oklahoma. According to the Oklahoma Geological Survey, 865 (40%) of the 2,179 CBM completions in Oklahoma from 1988 to 2002 were located in the Arkoma Basin. Wells adjacent to this property have average initial production of between .5 and 1.0 MMCF per day, although a number of the wells are producing over 1.0 MMCF per day. An average of 153 horizontal CBM wells completed in Hartshorne coal have provided initial production that averages 0.418 MMCF per day.
Most Popular Articles