NGAS Drills 1st HZ Weir Well in Appalachian Basin

Appalachian Basin
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NGAS announced that it has set pipe on its initial horizontal Weir sandstone well in the southern Appalachian Basin. Vertical depth was 3,600 feet, with the horizontal portion extending 2,040 feet. Completion with a 10-stage water frac is scheduled for July. A second horizontal Weir well is being drilled, and NGAS is currently permitting another five horizontal Weir wells for drilling this fall.

Although the initial well has not been tested, it displayed significant oil and gas shows. This well offsets six NGAS vertical Weir wells that came on line in the early part of the year, which are producing both oil and natural gas.

The Weir sandstone in the area ranges from 170 to 180 feet thick. It is the primary producing formation in the Roaring Fork field on the Kentucky and Virginia border, where approximately 500 Weir wells are producing both oil and natural gas. In the Amvest field to the southwest, NGAS has 78 producing vertical Weir wells. NGAS has over 70,000 undeveloped acres in these two fields and plans to develop the Weir horizontally with 100-acre spacing upon successful completion of the initial test wells.

"We are very encouraged with the oil shows we saw during drilling," commented William S. Daugherty, President & CEO of NGAS Resources. "The ability to drill the Weir horizontally should allow us to develop the oil and gas from this payzone much more effectively. The flexibility to shift more of our production to crude oil at an attractive cost is a significant development for NGAS."

NGAS will have both horizontal Weir wells fraced in July. Well results will be discussed during its earnings conference call in early August. In addition to its Weir tests, the company has completed 55 horizontal Devonian shale wells with lateral legs extending as far as 4,500 feet throughout its Appalachian acreage. All 55 wells are connected and producing high Btu gas.


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