Team Resources’ natural gas and oil field acquisitions were selected due to the potential of developing gas reserves, having nearly 30,000 acres currently under lease, the company said. These natural gas and oil leases were originally proved up by Texaco and Conoco in the 1950’s.
At the time, these gas reserves were left undeveloped due to the lack of demand and profitability. According to Kansas State records, the original wells produced oil from shallower formations bypassing the natural gas found in the deeper horizons.
Kevin Boyles, president and CEO of Team Resources and managing general partner of School Creek Walker Development & Pipeline Income Fund I, said: “After drilling and completing six wells here last year and confirming the presence of good gas/oil reserves, we decided to drill an additional eight wells in the area. Team’s McPherson Rig reached total depth earlier this week on the Team Walker #1 well and, after positive tests for hydrocarbon, set production casing.
”The Team Walker #1 well began flowing natural gas and is ready for production. The production volumes witnessed were in line with our forecast models. We plan to utilize our own recently acquired interstate natural gas transmission system to transport the natural gas produced here to market.
”Our five year plan involves the drilling of up to 100 wells in this region. Growing the natural gas volumes in our pipeline, thereby increasing the value of this asset, guarantees the best possible price for our product. With natural gas prices on the rise, we feel we’ve positioned ourselves very well for the future.”
