Shares of Sun Cal Energy Inc. (OTCBB: SCEY) ballooned up today after releasing news about its acquisition of the Jonah Prospects in Wyoming. SCEY closed up 39 cents (23 percent) at $2.05 per share on volume of just over 1.5 million shares.
SCEY has agreed to acquire a 100 percent working interest in 6,000 acres of leases in the Jonah Field region of Wyoming – the second largest proven gas reserve in the U.S.
This is the fourth core exploration and development region for SCEY. The company’s prospects are identified as South Jonah, which consists of 2,477.68 acres and West Jonah, consisting of 3,546.89 acres. Most of the surrounding acreage is currently held by EnCana and Yates Petroleum, with BP and Chevron/Texaco also holding significant positions.
“We are very pleased to add an asset of this class to our expanding portfolio of high impact oil and gas properties. The Jonah Field is a world class natural gas development area, with plans to allow the development of more than 3,000 new wells,” commented Lewis Dillman – president and CEO of SCEY – in a statement.
With current well spacing regulations, the company can drill up to 37 wells on this acreage. With technology developed in the Jonah and Pinedale fields, current completion techniques estimate gas in place between 1.0 and 3.0 BCF (billion cubic feet) per well. As such, South Jonah and West Jonah could provide between 37 BCF and 111 BCF of recoverable Reserves at a value of $222 million to $667 million.
“We look forward to the opportunity of further developing this asset and participating in the future success of the area,” concluded Dillman in a statement.
SCEY is an independent oil and gas exploration company with headquarters in Calgary, Alberta, and an operational office in San Francisco, California. The company aims to secure and develop a portfolio of oil and gas properties throughout America. The company is strategically placed in the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, the Breton Sound of Louisiana and the Jonah Field of Wyoming.
