This is a significant milestone and moves Energy Revenue America, Inc. into a natural gas production mode, generating revenue and creating internal funding to re-open more existing wells. ERA has 65 existing wells that can be re-opened on their 3,100 acres. The current goal is to re-open at least 30 of the 65 wells.
"Initial results from the 10 wells have exceeded our expectations," stated Charles H. Havens, ERA’s Chairman and Chief Operating Officer. "Our team will continue to utilize data gathered from the initial production of these 10 wells as we develop the full potential of the 3,100 acres. We expect these 10 wells to generate 180,000 MCF of natural gas on an annual basis. At current prices for natural gas this is close to $1M of production."
Energy Revenue America is drilling for natural gas in the Cherokee Basin in Oklahoma which is located in the Mid-Continent region in southern Kansas, northern Oklahoma, and western Missouri. The Cherokee Basin is the eighth largest coalbed methane basin in the United States and covers approximately 26,500 square miles.
Over the next 5 years Energy Revenue America expects to drill in excess of 300 wells in the Cherokee Basin. For every well completed, the reserve value for future gas from the wells becomes a value to ERA as future income. ERA estimates that gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M
