New Frontier Energy, Inc., a natural resource company engaged in the exploration, acquisition and development of oil and gas properties in the United States, announced that gross production at the Slater Dome CBM Field has averaged 1.2 million cubic feet per day during the first 20 days of March 2008.
Annual gross production at the Slater Dome Field increased approximately 228% compared to fiscal year ended February 28, 2007. The increased production at Slater Dome is primarily a result of additional recompletions in certain older producing wells initiated during last summer and fall. New Frontier Energy is in the final stages of bringing six of the eight new wells drilled during 2007 into production. Once regulatory approval to operate additional compression equipment at the Slater Dome Field is received, production from the new wells will begin.
"The Rex West pipeline which began transporting natural gas east to Missouri in January 2008 was an important step towards increasing the take away capacity for Rocky Mountain Gas," said Paul Laird, President of New Frontier Energy, Inc. "During March we averaged $8.00 per MCF at the well head. The effect of the Rex West on our gas market has become evident; our average sales price realized for the quarter ended February 29, 2008 was $6.36 per MCF representing a 20% discount to the average Henry Hub price for that period, compared with a 55% discount during the previous nine months. We are optimistic that the improved pricing environment will increase cash flow, shorten payback periods, and eventually allow us to accelerate our development efforts."
"Over time, improved pricing will become a true catalyst for regional producers to unlock the tremendous natural gas reserves present within the Rocky Mountain region; thereby, moving the U.S. towards energy independence," concludes Paul Laird.
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