NewsBonanza Resources Corp. has been notified by Concorde Resources that the first well drilled at the Texanna coal bed methane project, Eastern Oklahoma, has returned very positive flow results. With the first well successfully being completed, cash flow will be added to the bottom line. The company is now awaiting results of wells No. 2, No. 3, and No. 4, and the drilling of wells No. 5 and No. 6 will soon be under way. The Hammett No. 1 well was drilled and completed in the target Hartshorne coal and sand. The well has over 200 pounds of shut-in pressure and has flow tested up to 50,000 cubic feet of coal bed methane gas per day. Plans are being made to frac the well with a nitrogen frac, which will increase the porosity around the wellbore for even greater flow rates.
"The Texanna project is in an area where wells are producing from the blanket a formation (Hartshorne), which makes for a low-risk and high-reward project considering present-day gas prices," remarked president Byron Coulthard. "Reserves for the Hartshorne formation in active wells on neighbouring areas are estimated to be 350 million to 500 million cubic feet of gas per well."
The well is located in Section 24-10N-18E. The company and its joint venture partners intend to drill 22 wells over the next year at Texanna and have the potential to drill an additional 22 wells thereafter. There is potential for a total 88 wells to be drilled at Texanna. The company owns a 25-per-cent working interest with an 18.75-per-cent net revenue interest covering 3,800 acres gross. The estimated cost per completed well is $150,000 (U.S.) per well.