Lexington Resources Completes Oliver Well as a Producer
Lexington Resources has completed the drilling portion of its Oliver Unit #1H Well. The 2,300-foot horizontal section of the well is now completed, with a total depth of 9,300 feet. Additionally, production casing has been installed and cemented in place. With this portion of the well completed, the Oak Hills drilling rig is undergoing routine maintenance and demobilization from the well site. Well fracturing required to stimulate the Barnett Shale gas bearing rock in order to begin gas production is being scheduled either for month end or an alternative opening in April.
The Company also reports that the pipeline to tie the Oliver Unit #1H Well into a gas marketing line in the area is in process to be permitted and subsequently constructed. Further, the Company is securing contracts for metering, compression, gas dehydration and treatment, transportation, as well as gas marketing. The Company's well will tie-in to an existing gas pipeline that crosses the Company's lease leading to gas processing and marketing.
The Oliver lease was acquired by the Company with a 100% working interest
and a 70% net revenue interest in the 312 acres obtained. The Barnett Shale
gas target is estimated by management to be approximately 350 to 375 feet
thick, according to offsetting wells drilled by Encana Oil & Gas Inc., and XTO
- Lexington Resources Spuds Petta #1 Well (Sep 06)
- Lexington Announces New Gas Production From Peyton 1-25 (Jul 24)
- Lexington Resources Closes Equity Placement (May 17)