Nextraction Secures Drilling Permit for Chattanooga Shale Well

Nextraction Energy, through its operating partner, Vinland Energy Operating, LLC, has received permit approval to drill the Jennifer Conover #1 well located near the Kentucky/Tennessee border to test an unconventional Chattanooga (Devonian) shale target in the well-known oil and gas producing region of the Appalachian Basin. The well is permitted to a depth of 1,250 meters (4,000 feet) with the potential to encounter oil and gas reserves in several conventional zones above the primary unconventional shale target, including the Big Lime, Knifely and Warsaw formations.

"The Kentucky play fits our Company strategy to look for large scale targets with the potential for dozens or hundreds of wells where we can use our exploration and recovery experience to advantage in known productive fields," says Company President, Mark S. Dolar. "This initial well will provide the proof of concept for the play in both the conventional and unconventional natural gas resources."

Regionally, several other operators have been successfully targeting the Chattanooga shale for unconventional recovery utilizing modern recovery technology.

Nextraction and Vinland Energy Eastern, LLC, a private company from London, Kentucky, USA, have entered into a farm-out and joint venture agreement to explore over 70,130 acres in southeastern Kentucky. Vinland Energy Operating, LLC is the acting Contract Operator for the project. The Project Area is located in Whitley and McCreary Counties, Kentucky, between and on trend with recent Chattanooga Shale producing areas northeast and south-southwest of the Nextraction/Vineland acreage.

Paul B. Trost, Ph D., geologist and director of the company stated, "The Jennifer Conover #1 well is situated in a favorable location for reserves to produce from multiple horizons, and we will be able to apply certain technological theories to the completion of this well. Further, our proximity to existing pipeline infrastructure will put us in a position to be able to market gas to North America's largest gas market, the NYMEX market, should we achieve production as planned."