The Gordon Creek Project (which is also referred to as the "Carbon County Project" by Fellows) comprises 5,953 gross acres (4,879 net acres) in Carbon County, Utah and is adjacent to the Drunkards Wash field owned by ConocoPhillips. Drunkards Wash was originally developed in the early 1990s and currently produces over 4.5 Billion cubic feet of gas per month. The Gordon Creek field also includes an associated gas gathering system consisting of 10 km of pipeline and a scaleable compression facility that services the project as well as adjacent production. Gas is marketed into a transmission pipeline operated by Questar Gas Resources that crosses the project acreage. There are 8 existing wells on the field, 4 of which are currently producing and 4 are presently shut in. Certain 3rd parties own minority, non-operating interests in portions of the gross acreage, including 2 of the producing wells and 2 shut in wells.
MHA Petroleum Consultants of Denver, Colorado recently prepared a reserve evaluation for Thunderbird as at January 31, 2007 in accordance with NI 51-101, which estimated that Thunderbird's existing 50% interest in Gordon Creek contained proven and probable reserves of approximately 10.3 BCF of natural gas. MHA assigned a PV10 valuation to Thunderbird's 2P reserves of $19.3 million, approximately 90% of which are attributable to the 50% Gordon Creek interest.
"This purchase represents one more significant step in the implementation of Thunderbird's business plan as it will double our natural gas cash flows and reserves as announced last week," stated Cam White, President of Thunderbird Energy. "This will also put us firmly in control of the project, thereby allowing us to implement our development plans for Gordon Creek."
Thunderbird has also recently announced an agreement to acquire, subject to due diligence, a 50% interest in an additional land position of approximately 5000 acres immediately adjacent to and North of the Gordon Creek project. The other 50% interest in this block is held by Fellows. Thunderbird has the first right of refusal to purchase Fellows' interest in this block. Thunderbird is presently conducting due diligence on the proposed acquisition of a 19,000 acre, high impact, oil and gas exploration project on the north-eastern flank of the Power River Basin in Wyoming.
Thunderbird Energy is a Canadian-based oil and gas company that is focused on acquiring and developing untapped oil and natural gas opportunities, primarily in the United States. Thunderbird's current production mix is approximately 90% natural gas and 10% oil. In addition to the Gordon Creek natural gas project Thunderbird presently owns a 50% interest in a producing light oil project in Rush County, Kansas. Thunderbird's other holdings include a New Brunswick oil and gas exploration project adjacent to the Stoney Creek field.
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