PRB Energy Drills First Denver-Julesburg Basin Well
PRB Energy, Inc. has drilled its first well in the Niobrara formation in the Denver-Julesburg (D-J) Basin in eastern Colorado. The electric logs indicate that, upon completion, the well will be commercial.
The drilling rig ran and cemented casing and has moved to the second location.
After drilling the first six to seven wells of the 14-well program, the Company will begin fracing and completing the wells.
In addition, PRB has entered into an agreement with another company whereby PRB will be paid $1.9 million for its rights to a gas processing plant that was to be built in North Dakota. The payment reimburses the Company for its efforts associated with the planning and construction of the plant and pays PRB for its previous design efforts and its rights to the plant.
With respect to the RMG transaction that was announced on May 17, 2007, the Company received the second $500,000 payment on June 21, 2007.
Robert W. Wright, PRB's Chairman and CEO, noted, "We are very pleased with the indications received from the electric logs on the first D-J Basin well. We have accomplished much during the first six months of owning this property and believe that this acquisition will prove to be a significant asset for PRB. Regarding the Company's cash position, RMG has paid PRB $1 million toward the $3.25 million owed, with the balance due in October. In addition, in July a minimum of $1 million deposited to cover plugging and abandonment liabilities as a result of the Pennaco transaction in 2006 will be released and we are awaiting the payment of $1.9 million for the plant. This capital will be deployed to the Niobrara drilling program in the D-J Basin."
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- PRB Energy Enjoys Success on its Julesburg Basin Acreage (Jul 16)