The proven reserves of gas in the 208 drill sites are 109 billion cubic feet based upon an expert geologist report. The closing price of gas on the New York Mercantile Exchange as of December 8, 2006 was $7.56 per cubic foot of gas. Cost of the option, drilling and production costs is estimated at $1.75 per cubic foot.
There are five different pay zones with the first 6 wells targeted in the shallow pay zone at 5,000 ft. Other pay zones are located in the geologic formations composed of San Andres; Canyon Sandstone; Pennsylvanian Strawn Limestone; and Ordovician Ellenburger Dolomite. The cost of drilling in deeper pay zones is higher than in shallow zones.
The net proceeds from the 7 drill sites will be used by the Company to expand drilling operations to the remaining 208 drill sites and to finance the repurchase up to 25,000,000 of its shares in the public market place.
Grifco International is a provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industries throughout the United States, China, Mexico, South America, the Middle East and Africa. Grifco holds and owns design rights and manufacturing facilities for producing more than 6,000 products for the oil and gas industry with more than 150 clients.
Most Popular Articles
From the Career Center
Jobs that may interest you