Lexington Resources Begins New CBM Production

Lexington Resources reports that its Kyndal #2-2 Coal Bed Methane gas well reports initial flow rates of 500 Million Cubic Feet per day from the Hartshorne Coal target producing zone. The well feeds directly into the prospect's existing pipeline infrastructure to provide immediate gas sales. Although gas quality is not yet determined, Company management estimates that gas quality will be similar to the Kellster 1-5 well that averages approximately 0.94 to 0.95 BTU factor gas. The Kyndal #2-2 is the second of 4 to 5 horizontal gas wells that are to be drilled on the Company's Wagnon lease located in Pittsburg County, Oklahoma.

Lexington's President, Grant Atkins commented, "Our business strategy of obtaining smaller, but higher quality land positions for our first drillable land inventory, helps ensure consistent production right out of the gate. The Company's 100% success rate on our first two wells continues to validate the quality of our drilling and production team. As a result, I am confident that that our well completion percentage can remain consistently high".

The Kyndal #2-2 well is undergoing dewatering processes predictable to CBM gas wells that can incline in production once dewatering phases expose further gas producing reservoir rock. Fletcher Lewis Engineering will be retained to estimate reserves for the Company in this location. Other horizontal CBM gas wells in the area of production are reporting reserve estimates up to 0.7 Billion Cubic Feet ("BCF") per well.

The Company's operating subsidiary will "back-in" to a residual 53.2% working interest in net proceeds on the all wells located on the Company's Wagnon lease once capital repayment is complete. The third well on the Wagnon lease to be named the Bryce #3-2 is scheduled to begin in approximately fourteen days.

In addition, the Company has added to its South Lamar Gas Prospect's land position located in Hughes County, Oklahoma obtaining an additional estimated 200 acres. The additional acreage will allow the Company to drill an additional 4 to 5 wells on a full section of land in the prospect by either acquiring or pooling additional minor acreage required to complete the section, adding 4 to 5 further potential well sites to existing drillable inventory. Drilling plans for the South Lamar Gas Prospect are under current planning phases by the Company.

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