Petrol Closes on Additional Financing for Coal Creek Project
Petrol Oil and Gas says the the closing of an additional $10 million to support its expanded development program on its Coal Creek Project. This third tranche represents $25 million in funding recently acquired from Laurus Master Fund in an agreement that provides debt financing of up to $50 million.
"We began implementing our full field development program on the Coal Creek Project last November with the first $10 million tranche. Results from the Coal Creek project have been so encouraging that Laurus has provided us with an additional $15 million in development funds," said Paul Branagan, Petrol's Chairman and CEO. "As a result of these funding tranches, our field operations team will be able to accelerate the new well drilling and development program in the area, which should significantly increase our fiscal 2006 revenues and enhance our reserve and asset position."
The Coal Creek development program plan is based upon drilling and completing an estimated 540 gas production wells over a two to three year period, along with emplacing miles of gas gathering pipelines and infrastructure to process, transport and sell our gas into mid-west markets. To better manage the development of the 92,000 gross acres in the Coal Creek project and take advantage of the three interstate pipelines crossing Petrol's leases, Petrol divided the project into three fully self contained areas; Burlington, Waverly and Lebo.
Since development began in November, Petrol has brought on line 44 production wells, 3 salt water disposal (SWD) wells and gas gathering infrastructures in the Burlington and Waverly areas. In April, the Company received an additional $5 million which is being used to further the Coal Creek development primarily with the drilling and completion of additional production wells.
Petrol holds a 100% working interest (WI) and an average 80% Net
Revenue Interest (NRI) in the entire Coal Creek Project, covering coal
bed methane (CBM) and other oil and gas reserves located in eastern
Kansas and western Missouri.
- Petrol Names Steve Littell Chief Operating Officer (Aug 22)
- Petrol Welcomes New Board Members (Dec 14)
- Petrol Closes on Additional Financing for Coal Creek Project (Jun 07)