Irvine Energy has completed the acquisition of a 50% working interest in 12,849 acres of oil and gas leases in the North Cherokee area of Oklahoma for a cash consideration of U.S. $1.927 million.
The acquisition adds to the previously announced lease purchase of 4,167 acres in the Bearden area of Oklahoma (RNS 08/11/07) and forms part of the Oklahoma oil and gas assets that Irvine has contracted to buy from Metro Energy, as announced on 16 July 2007. The acquisition of the remaining Oklahoma assets is expected to take place in early January 2008.
The North Cherokee area is considered highly prospective for oil and gas, with both multiple conventional reservoirs and stacked oil pays. It is the Board’s view that the North Cherokee leases increase the production potential of the Company, whose portfolio now comprises over 130,000 acres across Kansas and Oklahoma.
The Company’s joint venture partner, Metro Energy, has completed drilling of the Patriot 3-15 well, the first development well offset to the Patriot 1-15 oil discovery in Oklahoma (RNS 20/07/07). The Patriot 3-15 well has reached its target total depth of approximately 3,400 feet with positive pay indications from the mud log and wire line logs. It is being cased in preparation for it to become a producing well. Initial flow rates will be established by the end of December 2007 and are expected to be comparable to the 1.2 MMCFD Patriot 1-15 well drilled earlier in the year.
The Patriot 3-15 well is the first of three wells planned to be completed by January 2008 using this drilling rig and Irvine will be funding an average working interest of 34.6% in the 3 wells after forced pooling.
Irvine Managing Director Aaron Close said, "Activity continues at pace with the Company, both with the expansion of our lease holding and the identification, through seismic acquisition, and drilling of wells in highly prospective and historically producing regions. Importantly, the drilling programme has included the first development well offset to the Patriot 1-15 discovery, which we believe has excellent potential."
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