Storm Cat Energy buying Fayetteville Shale leases.
Storm Cat Energy Corp. of Calgary, Alberta, said it has an agreement to buy 100 percent right, title and interest in oil and gas leases in Van Buren, Searcy and Pope counties. The deal, the financial details of which it did not disclose, closes in April and covers 20,000 gross and 16,000 net mineral acres.
In a news release, Storm Cat Energy's President Scott Zimmerman called the Fayetteville Shale Play "one of the highest profile plays in North America" and estimated recoveries of 1.0 billion to 1.4 billion cubic feet equivalent per horizontal well with an average cost to drill and complete of $1.6 million.
"These are attractive finding costs, even with higher service costs of drilling these horizontal wells," Zimmerman said.
The company is among a growing number of gas exploration firms beating a path to the play, a rock formation deep under northern Arkansas that some experts believe may rival the largest shale gas field in the country. The biggest investor in the Fayetteville Shale Play is Southwestern Energy Corp. of Houston, which formerly was headquartered in Fayetteville.
Storm Cat Energy is an oil and gas company that mines and develops unconventional gas reserves from fractured shales, coal beds and tight sand formations. It has properties in Wyoming's Powder River Basin, exploration and development acreage in Canada and Alaska, and "high-risk, high-reward" exploration acreage in Mongolia.
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|Date:||Feb 13, 2006|
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