Platina Applies for Drilling Permit for Devonian Shale Prospect
Platina Energy Group has applied for a drilling permit for its Appalachian Devonian Shale prospect. The highly defined Devonian Shale formation is a natural gas reservoir in Tennessee, operated by Appalachian Energy, a wholly owned subsidiary of Platina Energy Group.
Appalachian Energy was formed as part of the acquisition of fifty-five (55) well sites in the Devonian Shale formation. The Company has spent significant resources for scientific data accessing the natural gas reservoir with geological and petroleum engineering reports. The resulting reports, using forward contract natural gas price estimates, indicate a net present valuation for the field on a PV10 basis in excess of $60 million.
Individual well production estimates extrapolate production at current forward contract pricing in the $35,000-$42,000 range per month per well. Pipeline access crosses the field and ample compressor capacity is now readily available and currently in place.
"We are pleased to be in the formal application process for our first well sites for the Company's Devonian Shale prospect," said Steve Eversole, President of Appalachian Energy. "We are anxious to commence drilling operations and to move forward with our comprehensive development plan. I am confident in this prospect due to my extensive experience with drilling in the formation, and to numerous completed successful wells in this specific area."
Mr. Blair Merriam, CEO and President of the parent Company, Platina Energy Group, commented: "These first well permits will mark the initial step in our aggressive plan to develop the Appalachian Devonian Shale Prospect. Estimated recoverable reserves for the fifty-five (55) wells are over 27.5 BCF spanning a 10-year period. At current forward contract pricing available in excess of $8 per MCF, that is over $200,000,000. The Appalachian Devonian Shale prospect is one of Platina's most important assets which will be essential in our mission to become a substantial mid-tier oil and gas producer."
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