Drilling BeginsBonanza Resources Corp.'s has begun drilling for the first well on the Texanna coal bed methane project in the McIntosh county, Oklahoma. 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.
Bonanza president, Byron Coulthard, commented: "The Texanna project is in an area where numerous wells are actively producing from the Hartshorne formation. This fact makes Texanna a low-risk, potential-high-reward project considering present day gas prices. We hope to complete drilling four wells by the end of 2005."
The primary target is the Hartshorne coal bed methane formation which lies at approximately 1,500 feet below surface. In the area, reserves per well for the Hartshorne formation are estimated to be 350,000 million cubic feet of gas per well. The Booch coal and sand formation is a secondary target at a depth of 1,300 feet which contains 3.0 billion to 5.0 billion cubic feet of natural gas per well.
Concorde Resources has informed Bonanza that the Pense drilling rig No. 1 has moved on location to drill the Hammett No. 1 in Section 28-10N-17E of McIntosh county, Oklahoma. Bonanza owns a 25-per-cent working interest with an 18.75-per-cent net revenue interest covering 3,800 acres gross. The estimated completed cost per well is $150,000 (U.S.).