New Frontier Acquires Operator's Interest in Slater Dome
New Frontier Energy, Inc. said that it has completed the purchase of the operator's 36.7% working interest in the Slater Dome Field for $8,000,000. The purchase increases NFEI's interest in eleven gas wells together with their proportionate share of 32,000 acres in the Field located in Northwest Colorado and South Central Wyoming. In the transaction, NFEI acquired estimated proved reserves of 8,214,000 MCF of natural gas, according to an independent reservoir engineering firm. NFEI now owns a 66.7% working interest in the field. Six wells are producing from the Mesa Verde coal sections, three are shut-in awaiting further development work to enhance the dewatering process, one is awaiting completion work and one is shut-in awaiting connection to the gathering line.
Paul G. Laird, New Frontier's President and CEO, commented, "It's great to have closed this transaction. We drilled the initial discovery well in 1998 and are looking forward to operating the field and thereby, controlling costs and bringing the field to profitability more quickly. We plan on drilling several wells to further develop the field in 2007."
New Frontier Energy, Inc. is an independent energy company engaged in the exploration, development and production of natural gas and oil and the acquisition of natural gas and oil properties. We have an interest in three principal properties, the Slater Dome Prospect, located in northwest Colorado and south central Wyoming (the "Slater Dome Prospect"), the Flattops Prospect located in southwest Wyoming (the "Flattops Prospect") and the Nucla Prospect, located in western Colorado (the "Nucla Prospect"). The company's current and primary focus is on the development and expansion of the Slater Dome and the Flattops prospects. Both are coal bed methane projects located in the Sand Wash Basin in northwest Colorado and southwest Wyoming -- the southern end of the "Atlantic Rim." The Company owns a majority of the limited partnership interests in the 18-mile gas gathering line that delivers gas from the Slater Dome and Flattops prospects to a transportation hub. New Frontier Energy also holds 28 different leasehold interests in approximately 38,000 gross acres in its Nucla Prospect located in southwest Colorado.
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