hmmm>??? Northern Explorations Ltd. (OTCBB: NXPN) up 35.2% on 4.2 million shares traded.
On Jun 10, 2009 Northern Explorations Ltd. announced that the Company has received a reserve estimate for in-situ gas reserves at the Ozona Gas Project, Crockett County, Texas. The calculation relates to both the initial gas well and all future well locations which comprise a total of 20 well locations on the 9,000 plus acres. Third party reservoir engineers have calculated that a minimum of 10 BCF gas is in place under the leased acreage.
This equates to 0.5 BCF per well location. The first well was drilled, cased, completed and stimulated in the Wolfcamp Canyon Sandstone Formation and upon tie-in to the pipeline infrastructure has been producing gas since May of 2009 at daily rates of 200 MCF per day. The reservoir engineers conclude that each well location should contain a similar reservoir of gas.
As the gas is sold under a purchase agreement with Eagle Rock Energy and is currently priced at a bid-week production price of $4.04 per MCF, the Company is confident that the value of gas in place if entirely commercially viable could exceed $40 million at today's prices.
Norex President Mark Schaftlein states, "This information provides us with real impetus as we proceed in our strategic planning. Our acquisition selection process is currently well underway and this project is considered highly favorable for further exploitation. We are very pleased to find ourselves with such a fine collection of high quality projects at such an early stage. We aim to move quickly yet prudently in order to fully capitalize our position."
About the Ozona Gas Project:
The project encompasses approximately 9,000 acres and is a well documented and prolific location enjoying the presence of actively established companies such as Chesapeake, Devon, EOG, XTO, and Quicksilver Exploration. Norex is currently producing gas at Ozona. Norex has acquired a 63% Working Interest in the project located near Ozona in Crockett County, Texas. Under the terms of the underlying agreement with the vendors, Norex will receive a 47.5% Net Revenue Interest in all natural gas production from the project.
Norex Energy (Northern Explorations Ltd.) is an energy exploration Company currently developing natural gas projects across North America. The Company has acquired a working interest in natural gas assets located in Texas as well as projects in California and Alberta, Canada. The projects contain documented gas reserves and associated plant, pipeline and infrastructure currently in place.
