Domestic Energy Corp., an independent oil and gas exploration and development firm, announced here it plans to become one of the early participants in the new Chattanooga Shale natural gas development in Tennessee.
"Domestic Energy has people in the gas fields of Tennessee today, launching its bid to become one of the large independents operating in the state," said Larry Hillabrandt, President, Domestic Energy Corp.
"We will initially focus on acquiring existing wells and shale leases, then begin the construction of a gas gathering system and finally putting the newly acquired and drilled wells into production for oil and gas," he added.
"We believe that the Chattanooga Shale on the Cumberland Plateau in Tennessee will prove to be as economically productive as the Barnett Shale in Texas and the Marcellus Shale, that stretches from New York through West Virginia," he added.
"Last year, Consol Energy, Inc. drilled the first horizontal well in the region that had initial production of 3.9 MMCF of gas per day. That put the energy industry on notice that the Chattanooga shale is, in fact, an economically viable source of natural gas.
"There are several advantages to producing the Chattanooga Shale," Larry Hillabrandt noted. "The Chattanooga Shale is substantially shallower than the Marcellus, and Barnett shale with the Chattanooga shale being only about 1,500 to 2,000 feet deep. "In addition we feel the greatest advantage for us is that there are more than 1,000 abandoned and shut in gas wells in Tennessee that can be recompleted in the shale. We expect to acquire several hundred of these wells at a cost of well below what it would cost to drill new wells. This will be a substantial savings, and give us a competitive advantage we need," he added.
Industry sources believe the Tennessee Chattanooga shale gas play could eventually encompass 6,000 square miles and contain 5 trillion cubic feet of recoverable natural gas.
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