US-based oil and gas company Allenergy has acquired multi-billion dollar natural gas fields in Kansas. The utility acquired the 280 acre Kelso lease in Montgomery County, and 97 acres in Chautauqua County, in Kansas.
The Kelso lease has six completely equipped wells, a disposal well with pump and a complete tank battery. The lease is currently producing three barrels of oil per day from two of the six wells. Rex Horning Well Service will dispatch one work over rig to begin the remedial work next week.
The current production will provide a return on investment (ROI) in 10 months. However, after the company’s production department reworks these wells, it expects the ROI within six months.
The 97 acres in Chautauqua County purchase is an extension of Allenergy’s West Thorne. Allenergy needed this addition to continue the acquisitions of attractive geology leases for which larger companies are required.