Powder River Continues Aggressive Acquisition Strategy
Powder River Basin Gas Corp. has purchased another property in south Texas, East McFadden Field.
This property is located in Victoria County and is over 4,600 acres. Currently, East McFadden Field has three wells that are producing a total of 40 BOPD and 350 mcf natural gas per day. There are also an additional 52 shut-in wells on this project. Powder River intends to re-work all of these wells and install Electronic Submersible Pumps, or ESP units, which are capable of moving an average of 3000 barrels of fluid per well per day. The average oil cut is five percent. This equates to 50 BOPD per 1000 barrels of fluid moved.
The service work and ESP units are being supplied by Weatherford International, who has participated in The Company's research and due diligence on the project.
The property's total proved developed reserves are valued at 2.45 million barrels of oil and 2.5 BCF gas, which equates to $170 million undiscounted or $83.2 million PV 10% net income to the Powder River interest. These numbers, which were obtained from an independent engineering report are based on current oil and gas prices.
Powder River Basin Gas Corp. plans to begin the additional rework and development of the 52 wells and start production before the end of the year.
McFadden Ranch also has 79 additional locations that have been identified for offset drilling on the project. Powder River Basin Gas Corp. plans to complete a new 3-D seismic survey on the project, which is close to the successful Goliad County project.
"This is an exciting purchase for Powder River, as it brings our Texas holdings to close to 7,000 acres. McFadden Ranch is an excellent addition, as it is already producing and generating revenue while we rework the other 52 wells. In addition it provides a long term drilling and marketing project to fulfill Powder River's requirements over the next few years," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Basin Gas Corp. is active in production, acquisition, and marketing of crude oil and natural gas products.
- Powder River to Complete Waller County, TX Well End of Feb. (Feb 26)
- Powder River Acquires Stake in Texoma Oilfield Services (Nov 13)
- Powder River Completes First Well on Biamante Project (Oct 11)