Micron Enviro Makes Huge Natural Gas Discovery
Micron Enviro Systems has successfully tested its Z2 Well on the Green Ranch Prospect in Stephens County, Texas. The well was tested with gas rates up to 1.5 mmcf of gas. This new discovery was made in the fractured formation that has essentially not been tested in the past. This could mean a more substantial drill program than the proposed 15 well program previously announced. The operator is currently developing a multi-well drill program to exploit this new formation. The Z2 Well should be hooked into the pipeline for sales within two days.
Professional Engineer for the Green Ranch Prospect, Larry Burroughs, believes that based upon his interpretations of the all the data collected to date for the Z2 Well, that "the gas-in-place volume calculates 3.866 BCF (billion cubic feet) of gas for a 160 acre drainage area." Based on a current natural gas price of $5.90 per MCF (thousand cubic feet), a simple gross calculation of gas value would be 5.90 times 3.866 BCF would equal a gross value before any deductions of $23,157,340. "We were advised by a local geologist that a "look-alike" zone 2 counties away (but essentially the same formation) produced close to 7 BCF of gas per well. He advises that this well (Z2) is acting the same." The Green Ranch Prospect currently consists of 4,131 acres.
The Green Ranch Prospect is a proposed 15 well program consisting of 4,131 acres of leasehold on the Green Ranch in Stephens County, Texas. This leasehold is located approximately 50 miles northeast of Abilene, Texas and approximately 10 miles northwest of Breckenridge, Texas, along the North Stephens-Shackelford County line. The Green Ranch Prospect lies within an oil and gas producing province identified as Texas Railroad Commission District 7B, which encompasses 24 counties in North Central Texas. TRRC reports indicate District 7B has produced a total of 2.225 billion barrels of oil from 1935 through to June 2001. These reports also indicate the district has made 2.277 TCF of unassociated gas (gas wells) from 1970 through to June 2001. It is estimated that this district accumulated approximately 2.78 TCF of casinghead gas. During the year 2000, District 7B made 14.1 million barrels of oil, 18.6 BCF of casinghead gas and 45.3 BCF of unassociated gas. There has been over $1.9 million spent on the Green Ranch Prospect.