AREF Energy Holding announces the discovery of natural gas quantities in DeWitt County - Texas
AREF Energy Holding announces the discovery of natural gas quantities in DeWitt County - Texas, within the project that is 50% owned by AREF energy and the balance by U.S. partners "WEBER ENERGY & GEO SOUTHERN".
It should be noted that "Halliburton" was selected by the partners to carry the initial drilling activities, and coring. "Core Labs" which is a company listed in the stock market and one of the most renowned laboratories in upstream field- analyzed core samples from exploratory wells and reported the discovery of hydrocarbons in the cores.
The Corelabs report showed an estimated natural gas reserve of nearly 19 trillion cubic feet. When taking into consideration a recovery factor of 25%, the volume of gas available for production might be estimated at 4.75 trillion cubic feet, If fully developed and produced.
Weber Energy is currently taking preliminary steps to commence gas production operations from the first two wells and will use Halliburton or Shlumberger expertise for the fracturing process. Accordingly, actual production is expected to begin in the first quarter of 2009. Within the same concession, other layers are being evaluated for possible containment of gas reserves are also evaluating other layers containing for gas reserves.
It's worth mentioning that on 21 October 2008, PETROHAWK Energy CP (NYSE: HK) announced the start-up of actual daily production of 9 million cubic feet of free gas from their first well out of "Eagle Ford Shale" geological layer, and 13 Million Cubic feet of daily production from their second well. Such announcement would reinforce our positive outlook on our gas project which would have similar characteristics.
Such achievements will have positive and significant contribution on AREF Energy financial results for the coming years.
nb... weber took over the two wells in dewitt.. and put in a new permit a few days ago.. full steam ahead there.. about 5 miles or so south, the two pioneer wells are drilling he eagleford as previously announced by them.. but pioneer have experimented a lot on the chalks and shale already which is not announced.
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