JR Oil & Gas Inc. has determined the drilling location of the first natural gas well on its lease of 121 acres in Wharton County, Texas. The company, via 3-D seismic data, has discovered a shallow pocket or bright spot as an indicator that hydrocarbons exist on this location. The prospective drilling site is located in a prolific Texas natural gas producing area that is known for its abundant hydrocarbons.
The drilling depth of the first prospective well will be shallow, approximately 3,500 feet in total depth. The natural gas is located in the Shallow Frio Miocene sands formation, which will make for an extremely cost efficient well drilling. We are pleased to have the scientific data and experienced geophysical staff to analyze the data, and base our decision to drill at this location.
We are fulfilling our objectives and staying true to our plan of business and strategy. The well could yield a significant reserve of potential natural gas. The natural gas in this formation is a dry natural gas that is relatively easy to process into pipeline quality gas. We intend to begin drilling very soon; we anticipate having a drilling rig on site within 100 days.
After the well is completed at about 3,500 feet, we intend to drill further wells at deeper depths on the same lease. There are multiple pay zone depths on the same lease. For example, the Yegua formation, at depths of 9,000 to 11,000 feet, has the potential for significant reserves of natural gas as evidenced by seismic data and other nearby producing wells.
JR Oil & Gas Inc.'s New Year resolution is to take advantage of this beautiful and promising well location in this historically lucrative gas market we are in right now, said a JR representative. Oil is at approximately $95.00 dollars a barrel and Natural Gas is over $7.00 per thousand cubic feet.
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