The Kellster 1-5 well is the Company's first horizontal CBM gas well drilled, and represents the model for cost effective gas production initiatives that form the core of the Company's current development focus. Current business strategies call for the creation of primarily gas based cash flow, continued land acquisitions for increasing drilling inventory, and low drilling capital costs, combined with rapid repatriation of drilling capital in a low risk drilling domain. The Kellster 1-5 well was drilled to a vertical depth of 2,400 feet with a horizontal section of 2,200 feet and within the budgeted Authority For Expenditure ("AFE"). The well continues to develop as the dewatering process of the gas-producing zone continues.
Two further wells to be drilled on the Wagon Lease are scheduled to begin this month.
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