The decision to proceed on this prospect followed a review of significant project data including but not limited to 3D seismic, financial projections (AFE), well logs, and geologist reports, the company said.
This project will target natural gas and other liquids. Anticipated depth of the test well is approximately 7,800ft. Projected well production from the lease is estimated at
60bbl/d of oil and a total reserve of 6bcf to 8bcf of gas.
Today, 50% of natural gas consumed in the US comes from wells drilled within the last three years. Currently, 25%-30% of the gas produced comes from wells drilled last year, according to data from the ISH Energy Group. In consideration of these industry and consumer related conditions, the company expects this prospect to fit within the scope of its forward re-entry plan into the energy sector, the company added.
Upon completion of the purchase and execution of the joint operating agreement, Matrixx will furnish additional financial and technical data pertinent on the lease.
