Lexington Reports March Well Production Results

Lexington Resources reports results for the month of March, 2004 for Coal Bed Methane ("CBM") gas production from its Kellster 1-5 well located on its Wagnon Lease in Pittsburg County, Oklahoma: the well produced gross sales of approximately 12,714,000 cubic feet of 0.94 BTU grade gas for gross revenues in excess of $45,000 in its first full month of production. After payments of royalty interests, production costs and taxes, resulting net proceeds of approximately $34,000 were received. Well dewatering phases of the gas-producing zone continues with daily water production decreasing over time.

The Kellster 1-5 well is the Company's first horizontal CBM gas well drilled. Once the well drilling capital cost is repaid, the Company's operating subsidiary will "back-in" to a residual 53.2% working interest in net proceeds from well production throughout the well life.

Pursuant to further drilling activity on the Company's Wagnon gas lease, the Company reports that two additional wells (Kyndal #2-2 and the Bryce #3-2) are scheduled to be drilled on the property back to back beginning before the end of the month. Drilling site locations have been determined and final site preparation in contemplation of drilling is in process.

The Company further advises that drilling of the Company's first Caney Shale vertical well is scheduled to begin in the next two weeks on Lexington's new Middlecreek Gas Prospect located in Hughes County, Oklahoma. The drilling prospect into the Caney Shale zone is planned to an estimated depth of 4,500 feet.

Our Privacy Pledge

Most Popular Articles
Related Articles

Brent Crude Oil : $49.71/BBL 1.50%
Light Crude Oil : $48.7/BBL 2.05%
Natural Gas : $3.11/MMBtu 12.68%
Updated in last 24 hours