NGAS Move to Obtain Interest Yields 26% Increase in Wells Drilled
NGAS Resources drilled 48 gross (21.9 net) wells during the fourth quarter of 2007 and a total of 217 gross (82.2 net) wells for the year as a whole, compared to 226 gross (65.5 net) wells in the prior year. The 26% increase in the company's net well position for 2007 reflects a shift in its business model to retain all of its available working interest in wells drilled on key operated properties. This strategy was implemented late in 2007, and most of the higher net interest wells were awaiting connection at year end. For 2008, the company has a drilling budget of $44 million, including its horizontal drilling initiatives, plus $6 million in infrastructure enhancements.
During 2007, the company constructed 63 miles of gathering lines, extending its gas gathering and transmission system to a total of 593 miles. Additions to the company's infrastructure during 2007 also included facilities to handle new production from its New Albany shale project in western Kentucky and a natural gas processing plant in Rogersville, Tennessee for extracting liquids from its southern Appalachian production. Both of these projects are being brought on line in the first quarter of 2008.
- Magnum Hunter to Acquire NGAS Resources (Dec 27)
- NGAS Receives NASDAQ Notice of Bid Price Deficiency (Oct 01)
- NGAS Notes Drilling Activities in Roaring Fork (Sep 23)