Production from the purchased wells is anticipated to be in excess of 2,000 Mcf and 100 barrels of crude oil per day when the transaction is effective and all wells are completed and connected to the pipeline. EnDevCo anticipates production to be on stream by June 30, 2004. At current prices, the Company projects its net revenue interest initially to exceed $13,000 per day or almost $400,000 per month from these wells.
The 14,600 acre leasehold potentially contains reservoirs in the Senora, Red Fork, Bartlesville, Upper and Lower Booch, Gilcrease, Union Valley, Cromwell, Jefferson, Viola and Wilcox formations as well as unconventional gas production from the Caney and Woodford shale intervals. EnDevCo estimates the original gas in place over the leasehold to be in excess of 2.3 Tcf and expects to recover approximately 500 Bcf over the next 15 years. At full production, the Company projects its net revenue interest from the leasehold to exceed $150 million per annum at current prices.
The pipeline company serves the 14 wells purchased by EnDevCo as well as wells producing on adjoining acreage with over 40 miles of 2 inch and 4 inch gathering systems which includes 3 taps to interstate pipeline carriers. EnDevCo will continue to develop the pipeline and gathering systems to serve the region's needs and anticipates the pipeline company to be an ongoing profit center for years to come.
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