Approximately 55 square miles of 3D and 15 line miles of 2D will be shot in the Butler, Cowley and Barber counties, at a total cost of approximately US$ 2.5 million, of which Irvine will contribute US$2.25 million of the costs. Processing and interpretation of the data will begin in June and carry through September as surveys are completed.
The program is being run to generate several conventional oil and gas exploration targets in the multiple shallow stacked conventional oil and gas reservoirs from 500–1,700 meters. As many as 12 conventional production intervals have produced in the area at depths of 1,500-5,000 ft (500-1,525 m) with three, Arbuckle, Mississippian and Pennsylvanian, being prolific. In addition, evaluation of the Chattanooga shale will allow for the evaluation and proper placement of future shale completions.
Initial drilling for conventional targets is proposed to begin in early Q4 2007. Evaluation and testing of the Chattanooga shale is proposed to commence in late Q4 2007 and carry into 2008.
Metro Energy Group is the operator of the exploration and development joint venture.
Irvine Managing Director Aaron Close said:
"The commencement of the seismic program is an exciting phase for the Project and the Company, following on from the aggressive land acquisition program. The program is being undertaken in a historically productive region, with multiple oil and gas reservoirs, that has lacked the application of state-of-the-art exploration techniques, including 3D seismic. It is the Company's near term objective to build production and a reserve base on the conventional targets and generate early cash flow. We will then collect data to evaluate the shale potential of the region while drilling wells that are on conventional targets to gain data at minimal cost that will potentially provide Irvine with further significant upside potential within the Chattanooga shale."
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