NewsBonanza Resources Corp. has been notified by Concorde Resources that the sixth well has been drilled in McIntosh county, Oklahoma. The Roundball No. 1-18 is located in the southeast of the Southeast quarter of Section 18-10N-18E. The well was drilled to a total depth of 1,700 feet and pipe has been set to total depth. Three gas-bearing zones where encountered while drilling the well. The formations that had gas shows are as follows: Booch sand at 1,374 to 1,414 feet, Hartshorne coal at 1,699 to 1,702 feet and the Hartshorne sand at 1,702 to 1,750 feet.
"We are so pleased with the drilling of this well since we have found the Booch Channel sand. 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 but having the Booch enhances the reserves that will come this well," remarked president Byron Coulthard.
In the area, reserves per well for the Booch Channel sand are 800,000 (plus or minus) million cubic feet of gas per well and the Hartshorne formation is estimated to be 350,000 million cubic feet. The project has the potential of 22 wells to be drilled on 160-acre spacing initially with additional wells to be drilled on 80 acres later. 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.
The company is granting one million incentive stock options under its stock option plan. These options will be granted at a price of 30 cents per share for a period of five years to directors, officers and consultants of the company. The plan received disinterested shareholder approval at its annual general meeting in April, 2006.