A well at Hinson #1 in Young county, Texas, is nearing target depth for Petrichor Energy (
TSX:V.PTP,
Stock Forum) in a bid to test the Caddo Lime, Marble Falls, Barnett Shale and Mississippi Lime formations for oil and gas.
The first of three wells in the current testing program, Hinson #1 sits on a prospect that is 66.67% owned by Petrichor and covers 11.6k acres over the Barnett Shale.
Though shares were unchanged at $0.445 on the news, the company has ramped up 43% since the beginning of October, and more than doubled since July, when it sat at $0.18.
According to a
company news release, “The Mississippi Lime is a Mississippian age porous limestone formation that is deposited beneath the Barnett Shale, which is analogous to the Mississippi Lime play in Kansas and Oklahoma. The Marble Falls formation is a Pennsylvanian age limestone, analogous to the Strawn Lime play in West Texas. To date, independent operators have drilled over 50 vertical and horizontal multi-stage fraced wells in the Marble Falls and Mississippi limestone with positive results.”
Despite a small market cap ($13.6 million) and tight share structure (30.7 million shares outstanding),
Petrichor upped its stake in the prospect in late November, acquiring an increased share from the operator of the project, BlakEnergy.
Petrichor CEO and director Joe DeVries told Stockhouse, in
an exclusive interview in November, that the company plan for 2014 entails “drilling the first three test development wells at Marble Falls, (commencing in the first quarter) and bringing production on line, while continuing to set up aggressive well development in the balance of the last three quarters of 2014.”
The company will seek to “build value for our shareholders through strategic development of proven, in-ground, long-life reserves.”
FULL DISCLOSURE: Petrichor Energy is a Stockhouse Publishing client, but has not paid for this article.