GASFRAC Energy Services Inc. GSFVF

RE: NG down - Garretts...

[Wellsitter]

Areas around N. America are known to be liquids-rich and others are known to be sour, others dry. All GFS does is enhance production. A single well-bore might transit through several different prospective zones and yes, each zone can be frac'ed independently to enhance production. Directional drilling is usually done to get to a bottom-hole location that isn't accessible from directly above. A company can access the oil or gas under a lake for example by drilling directionally, going down a few hundred meters and then angling off at 40 -75 degrees until they reach the target.

A horizontal well goes straight down for a portion of the hole and then angles-off at +/- 90° to position the well-bore right along the bottom of the producing formation. Gravity keeps everything moving down toward the earth's core so a horizontal bore on the bottom of the formation will have the effect of sticking a straw right to the bottom of a glass.

If a company goes to the expense of drilling a well, they will usually produce it so long as it is economical to do so whether it's dry gas, liquid-rich or other-wise. There are some companies however, who have decided that they simply won't sell their gas at current prices because they think they are selling their assets to cheaply.