1st NRG Corp – Issues a Corporate update for April 2017
Denver, Colorado (April 12, 2017) 1st NRG Corp. (OTCBB: FNRC.PK) an exploration and
production company headquartered in Denver, Colorado has issued its monthly corporate update to
shareholders on the Company’s progress.
? In November 2015, the company announced its intent to purchase a natural gas gathering system.
The systems cover over 324 miles and gives the Company access to over 100,000 acres of
potential development. We tirelessly sought an insurance policy to solve a closing condition
imposed by the sellers, but to no avail and the condition will be met with a performance bond
instead. The revised purchase and sale agreement is being reviewed and we anticipate closing in
the next 30 days.
? The Company entered into a Letter of Intent to purchase over 600 coal bed methane wells through
its wholly owned subsidiary 1st NRG Wyoming. Complicating the process, the seller filed for
bankruptcy protection in March 2017. We are finalizing the purchase and sale agreement and
related documents for presentation to the Bankruptcy Court and determination of a timeline for
closing.
? The Company expanded its activities into Ohio participating in a development of prospective
acreage encompassing approximately 7,000 acres. In 2014, a vertical test well was drilled, logged,
cored and cased to a depth of approximately 7,620 feet, testing the Utica Shale but ultimately
completed in the Beekmantown Dolomite. The well was put on pump this month and currently is
pumping 40 bbls of water per day with strengthening shows of natural gas. We expect further
results as the frac water and the hydrostatic head is pumped off.
? The company had plans to bring the Clabaugh Ranch field in Wyoming back into production Q2
2017, however we are still in discussions on the overall financing of the Company which have
delayed our ability to bring the field back online. As part of our financing, we plan to acquire the
other 42% of the working interest in the field.
? We have reached a verbal agreement of terms for $11 million dollars in financing for the
announced acquisitions and return of Clabaugh Ranch to production, we await the definitive term
sheet.
About 1st NRG Corp.
Our activity has been centered upon the development of coal bed methane reserves in Wyoming where
through our wholly owned subsidiary, 1st NRG Wyoming, we operate and hold a working interest in 43
producing wells, 3,059 undeveloped acres and an estimated 18.5 Bcf net to our interest. The undeveloped
acreage could be permitted for up to 36 additional locations which are characterized by what we believe to
be low geologic risk, a repeatable development opportunity and are offsetting wells which all demonstrated
developed coal seams in the Schwartz, Anderson, Canyon, Cook and Wall formations. In 2014 we
expanded our activities into a development of acreage in SE Ohio encompassing approximately 7,000 acres
where we hold a 35% working interest in a Beekmantown Dolomite well.
Contact:
Brad Holmes
Energy IR: b_holmes@att.net
(713) 304-6962
