Superior also announced that it has obtained an option to acquire an additional 7,000 acres in Montague and Wise Counties, Texas. The acreage is an offset to a number of currently producing wells in the Barnett Shale formation. Wells that are currently, among others, drilled and operated by Encana Corp. and Devon Energy. A major natural gas pipeline is available and this is owned and operated by Dynegy.
The Barnett Shale estimates received an extra boost with news recently released by the government. The long-awaited U.S. Geological Survey assessment of the Barnett Shale shows a recoverable reserve of almost 30 trillion cubic feet of natural gas. These figures are expected to increase in the near future as technology continues to advance and drilling continues.
The Barnett Shale is a highly prolific gas formation that is quickly becoming one of the largest gas fields in the nation. Over 2,000 wells have been drilled in this region, with some wells coming in well over 3 million cubic feet per day, as the horizontal drilling and completion procedure is refined. Superior views the Barnett Shale area as a bonus that may generate significant cash flow and value to the company.
Alan Stricklin, president of oil and gas operations for Superior, stated: "With the addition of this lease and the option to add more acreage to the assets of Superior, it indicates the direction of the company. Additionally, the company is in negotiations to purchase several producing, and developmental oil and gas leases in Texas, Oklahoma, and Colorado. The company is also in negotiations for the purchase of a sizeable natural gas transmission and gathering system in Texas."
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