The company has developed a plan to focus on low risk exploration and production reclamation projects in the oil and gas sector. It anticipates additional and substantial funding to be invested shortly in its joint venture agreement with Oxalis Energy to complete its joint venture agreement.
Under the terms of the recently announced joint venture agreement with Oxalis Energy, Pepper Rock will drill an initial 10 development wells. Each well has an approximate cost of $500,000 per well, and will be drilled to a depth of 4800ft to 5200ft.
Recent geological reports estimate proven undeveloped reserves of 100 billion cubic feet of natural gas. Another recent reserve report suggests a potential valuation of $285 million to $423 million, using a base price of $3.50 per thousand cubic feet of natural gas.
Phil Kueber, president of Pepper Rock, said: “What is encouraging to us is that each of the 10 wells in this first phase is estimated to represent approximately 200,000 cubic feet of natural gas production per day.”
