Force Energy Corp. announced the intent to develop the Dripping Rock Prospect. Force has entered into an LOI (Letter of Intent) with Desert Mining Inc. to farmout the Dripping Rock Prospect located in Sweetwater County Wyoming: 6th Principal Meridian, Range 94W, Township 14N, Section 6 to the Company.
Force shall pay its share of the lease costs of $363,000 and dry hole costs of $2,000,000 by July 15, 2008 for 75% WI (Working Interest). Upon Completion through tanks, on the "earning well", Force shall earn an assignment on the entire lease and all working interest parties shall pay their pro-rata share of any additional wells drilled on the lease. Total A.F.E. (Authority for Expenditure) for the "earning well" is estimated at $3,634,864 and all adjustments to the A.F.E. shall be credited back to the Farmee.
To complete on the Dripping Rock Prospect, the Company will need to raise sufficient financing for its share of the costs. Force is currently in negotiations with several investors to raise the necessary funds.
Dripping Rock wells are prolific with reserves up to 20 BCF (Billion Cubic Feet) per well. The average Dripping Rock well has a EUR (Estimated Ultimate Recovery) of 10BCF. Currently permitted to drill are 8 wells on 80 acre spacing with the possibility of down spacing to 40 acres. Assuming 50% recovery of the average Dripping Rock EUR, drilling 8 wells at $4.50/gas represents an estimated $180,000,000 of gas potential in the ground.
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