Noel drilling plans for increased production.Goldnev already enjoys natural gas production at Noel and Provost along with a revenue stream with production of approximately
125 mcf/d (20 boe/d) and 150 mcf/d (25 boe/d) respectively, and any information you need can be found on the website
https://www.goldnevresources.com/noel.asp or on Sedar. Although the company has stated further drilling at Noel will take place through news releases and the website, I'm expecting drilling will take place soon. From SEDAR:
"The terms of the farm-in agreement with Devon require the Company to complete the tie-in and put
into production a suspended gas well in order to earn a 100% interest in the first section, referred
to as Block “A”. Once the Company has satisfied the terms of the farm-in of Block “A”, then the
Company has the right to review the seismic data that Devon owns for the entire Noel property and
subsequently
has until August 25, 2008 to drill an Option well on the Block “B” lands which
incorporate the other 2 sections of the 3 section block.
Upon completing the drilling of the Option
well on the Block “B” lands, the Company will then own up to a 100% interest in the 2 sections of
Block “B”. Under the terms of the agreement, Devon will earn a 15% gross overriding royalty on
the production from all three sections of lands."
On May 22 2007, the Company completed the tie-in and
placed into production the Noel gas well,
thereby satisfying its initial farm-in obligation to Devon."
And this from the corporate update:
"The Noel property in northeastern British Columbia consists of three sections of land and one gas well that was completed in the Fahler zone and is
currently producing approximately 125 mscf/d (20 boe/d).
Goldnev is currently in the midst of pursuing certain opportunities to increase its land position in the Noel area, and it is expected that the results of the negotiations will be known in the next 60 days.Once the results of the land negotiations are realized, the Corporation will conduct a re-completion on the gas well which will involve perforating and fracture stimulating to test two identified up-hole shallow gas zones. The re-completion is expected to be
completed in the summer of 2008. The Corporation expects the well re-completion will produce on a gross basis approximately 1,000 mscf/d (or 166 boe/d) and, if successful, will contain a minimum of 2.2 bcf of gas reserves."
"The Corporation also plans on drilling a minimum of two wells on its Noel property in 2008 to continue to exploit the potential of the prolific Fahler and Cadotte formations and the identified shallow gas zones upon the successful outcome of the well re-completion program. Goldnev has a 65% working interest in the Noel property."
In my conversations with Marc nothing has changed in those plans. As I mentioned in a previous post I'm expecting natural gas prices to continue to rise through 2008.
Ask yourself how many other $.29
natural gas producers that have NI 51-101 compliant of 2 billion barrels of oil distillate are out there with more to come? rich47.