Victory Energy Corporation has committed to drill deep wells in the Strawn and Ellenburger natural gas zones in the Corporation's gas play, located in the Texas Permian Basin.
Victory has completed due-diligence for wells that were produced from deep gas zones, Strawn Limestone and the Ellenburger Dolomite. This is in the same gas field where the Corporation is currently drilling. The information from these wells allows Victory to engage in infield drilling of offset wells, greatly reducing risk involved. There is spacing and offset analysis to drill 40 deep gas wells within the acreage that Victory controls.
Two existing offset wells, which are producing out of these deeper gas zones, are producing approximately 2.5 million cubic feet of gas per day. At today's price, this equates to $25,050 revenue per day. These wells are located in the same trend that Victory has targeted for its deeper wells.
The Strawn Limestone gas zone will produce approximately 1.5 BCF and the Ellenburger Dolomite gas zone will produce approximately 5.0 BCF, over an average life span of 30 years. The Strawn zone is usually found at 9,000 to 9,800 feet, while the depth of the Ellenburger zone is between 10,500 and 11,500 feet.
"To reduce our risk, an offset well is drilled to the deepest gas zone, the Ellenburger Dolomite. This is the first of three zones to produce and deplete, followed in succession by the Strawn Limestone gas zone and Canyon Sandstone gas zone. Even though these wells are more expensive to drill, the payback from the production in these three commercial zones is tremendous," stated Jon Fullenkamp, President of Victory Energy Corporation.
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