PrimeGen Reports on Its Fayetteville Shale Project
OREANDA-NEWS. On March 20, 2007 PrimeGen Energy Corporation (OTCBB: PGNE) ("PrimeGen" or the "Company") wishes to report on its Fayetteville, Arkansas shale gas project, reported the press-centre of PrimeGen Energy Corporation.
Through its ownership of 100% of the Class A Interest of FS Sub-participation #1 LP, a Texas-based limited partnership, the Company owns a 10% working interest (the "Working Interest") in approximately 40,000 acres in the Fayetteville Shale play (the "Fayetteville Project") located in Van Buren, Stone and Cleburne Counties, Arkansas.
The working interest partners in the play are nearing the end of the lease consolidation process and plan to drill the first wells in the next several months. It is estimated that each well will be drilled at a cost of approximately $2 million, or $200,000 net to PrimeGen's working interest. The acreage hosting this 'unconventional' shale gas play will be developed primarily by the drilling of horizontal wells with fracture stimulation as required. There is a major (16") gas pipeline within close proximity.
The Fayetteville Shale in Arkansas is in the early stages of development to extract shale-gas in a fashion that is analogous to the successful development of the Barnett shale of Texas. Many mid-continent gas producers consider this region to be the next promising unconventional shale-gas play.
The Fayetteville Shale Play is currently being explored and developed by, among others, SouthWestern Energy ("SECO"), Chesapeake Energy Corp., Shell Oil Company, Maverick Oil and Gas, Inc. and Hallwood Energy Corp. SECO recently announced an increase to their daily net gas production for the Q2 period of 50 MMCF per day, up from 20 MMCF in Q1. SECO now is producing from 148 wells (94 being horizontal) and it plans to drill 175-200 additional wells through 2007.
In other Company news, Mr. Gordon Samson has resigned as a director and officer of PrimeGen for personal reasons and the Company wishes him every success in the future.
About PrimeGen Energy Corporation (OTCBB: PGNE)
PrimeGen Energy Corporation is assembling a portfolio of North American oil and natural gas plays selected for their existing or past production history or high upside exploration potential. PrimeGen Energy leverages its extensive network of contacts within the North American oil and gas community to acquire interests in leaseholds that either are in production, near to production, or demonstrate significant exploration potential.
The Company is focused on some of the most commercially active and prospective oil and gas regions of Canada and the United States. Through smart acquisitions, advantageous partnerships, proven industry expertise and sound corporate management, PrimeGen is working to generate revenue, bankable reserves, self-sustaining production, and shareholder value.
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