Lexington Resources Plans to Drill 12 More CBM Wells

Pittsburg County, Oklahoma
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Lexington Resources has conducted pooling of residual land interests for a total of twelve further gas well target locations on two of its leasehold interests, pursuant to the Company's drilling program. Twelve target coal bed methane gas well locations have been identified on three sections located on the Company's "South Lamar" and "Coal Creek" prospects. The pooling and initial well site preparations advance the Company's anticipated drilling of horizontal coal bed methane wells on its leases in the Hartshorne Coal target.

The Company currently plans to drill its fourth horizontal gas well on its Wagnon lease located in Pittsburg County, Oklahoma. The proposed well, named the Caleigh 4-2, is scheduled for drilling imminently. Site preparations have been completed in advance of the arrival of the drilling rig. The proposed Caleigh 4-2 well to be drilled follows the successful drilling of the Kellster #1-5, Kyndal #2-2 and Bryce #3-2 horizontal gas wells, completed in February, June, and July, 2004 respectively. The Caleigh 4-2 is the fourth of four to five horizontal gas wells that are to be drilled on the Company's Wagnon lease. Drilling and completion time is estimated at two to three weeks based on depths and drilling protocols similar to those previously experienced in the drilling of the Hartshorne Coal production target of the Kyndal, Kellster, and Bryce wells.

The expected new well will utilize existing base infrastructure, and gas gathering systems already established earlier this year by the Company on the Wagnon lease. A larger compressor will be installed in connection with the expected new well to better effect overall production from the wells. The scientific, geophysical, geological, surface support, and drilling teams are the same as those previously utilized successfully by Lexington for its last three wells on the Wagnon Lease.

All coal bed methane wells on the Company's Wagnon lease are undergoing dewatering processes predictable to CBM gas wells that can incline in production once dewatering phases expose further gas producing reservoir rock. The Company's Kellster well, drilled in February, 2004, is showing signs of production incline, increasing gas flows by approximately 40% over the last three months. Total average daily production from the Company's three existing wells is in excess of 1 million cubic feet per day, and proves both the Company's business model and its ability to cost effectively drill, complete and produce gas from non-conventional target sources.

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