Tradestar has acquired a producing gas well and disposal well in Erath County, Texas. The single well package is currently producing 50 thousand cubic feet of natural gas per day and has one offset drill location that could push daily production to better than 200 thousand cubic feet per day. An additional 300 acres surrounding the wells are under option as well. The acquisition also offers Barnett Shale potential, which Tradestar CEO Tom Feimster called "strategic" in light of the company's current joint venture with United Production and Exploration.
Tradestar CEO Tom Feimster continued by stating, "This is another example of a 'no-to-low-risk' acquisition for Tradestar. At current market prices this well returns 100% of our initial investment in 18 months. However, if natural gas prices spike this winter as expected, we'll break even in less than a year. That's an easy decision to make."