Falcon Natural Gas Finalizes Plans for Hollins Prospect
Falcon Natural Gas with Edwin S. Nichols Exploration, Inc. plan to immediately start development of the Hollins Prospect and have selected a drilling contractor.
The Hollins Prospect is a low risk, infill offset and developmental offset drilling prospect located along a very prolific area of the Eastern Shelf in northwestern Nolan County, Texas that will target the Canyon Sand over (+/-) 1,480 acres of leasehold position and should ultimately result in the drilling of 20 to 25 wells. The Prospect is in trend with numerous producing fields and is located 1 mile west of the Sweetwater Canyon Unit that has produced over 4.8 million barrels of oil. Good subsurface information including well logs, drill stem tests, completion and production data was available in the preparation of this prospect. Most wells drilled on this prospect will be infill offset or developmental offset wells. A high success rate is expected with this development program. It is estimated that approximately 1.5 million barrels of oil equivalent could be recovered from the prospect area. The total cost to develop a 20-well field is estimated to be approximately $14 million.
Falcon Natural Gas Corp. has purchased 75% of the working
interest (55.80% of the net revenue interest). Falcon also
will pay its proportionate share of all G&G costs, third
party prospect fees, land brokerage costs, lease bonus and
all other similar costs of the prospect as per the agreement
with Edwin S. Nichols Exploration, Inc.
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