New Frontier Gains Controlling Interest in Slater Dome
New Frontier Energy, Inc., a natural resource exploration and production company, engaged in the exploration, acquisition and development of oil and gas properties in the United States, said that it has entered into a purchase and sale agreement with the operator of the Slater Dome Field. The $8 million transaction gives New Frontier the operator's 36.66667% working interest in eleven gas wells together with their porporinate share of 32,000 acres in the field, which is located in Northwest Colorado and Southwest Wyoming.
The properties are entirely within NFEI's existing leasehold at the Slater Dome field. In the transaction, NFEI will acquire an estimated proved reserves of 8,214,000 MCF of natural gas, according to Questa Engineering Corporation, an independent reservoir engineering firm. After the transaction is completed NFEI will own a 66.66667% working interest in the field. Six wells are producing from the Mesa Verde coal sections, three are shut-in awaiting further development work to enhance the dewatering process, one is awaiting completion work and one is shut-in awaiting connection to the gathering line.
Paul G. Laird, New Frontier's President and CEO, commented, "We are excited about increasing our ownership in the field which has been our main focus of our development efforts for the three years. Acquiring operations will allow NFEI to control costs and bring the field to profitability more quickly. We anticipate closing the transaction by the end of November 2006. We plan on drilling additional wells to further develop the field in 2007."
New Frontier Energy, Inc. is an independent energy company engaged in the exploration, development and production of natural gas and oil and the acquisition of natural gas and oil properties. We have an interest in three principal properties, the Slater Dome Prospect, located in northwest Colorado and south central Wyoming (the "Slater Dome Prospect"), the Flattops Prospect located in southwest Wyoming (the "Flattops Prospect") and the Nucla Prospect, located in western Colorado (the "Nucla Prospect"). The company's current and primary focus is on the development and expansion of the Slater Dome and the Flattops Prospects. Both are coal bed methane projects located in the Sand Wash Basin in northwest Colorado and southwest Wyoming -- the southern end of the "Atlantic Rim."
The Company owns a majority of the limited partnership interests in the 18-mile gas gathering line that delivers gas from the Slater Dome and Flattops prospects to a transportation hub. New Frontier Energy also holds 28 different leasehold interests in approximately 38,000 gross acres in its Nucla Prospect located in southwest Colorado. The company's common stock is listed on the over the counter bulletin board under the symbol "NFEI." Additional information about New Frontier Energy, Inc. can be found at the Company's website www.nfeinc.com.
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Company: Questa Engineering Corp. more info
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