Natural gas is one of the principle sources of energy for our everyday needs and activities. The continued abundance of natural gas, paired with its increasing demand, makes it a competitive market expected to help meet the energy needs in the United States.
Domestic Energy Corp. (OTCBB: DMEC) today announced the acquisition of the working interest and operating rights to more than 90 wells in Tennessee with Chattanooga Shale potential. Domestic Energy acquired the wells from several privately owned companies in Tennessee in a cash and stock transaction. Larry Hillabrandt, CEO of Domestic Energy, said the wells are within 17 miles of a Consol Energy Chattanooga Shale well with an IP of 3.9 MMCF of gas per day.
“The long term potential is the development of the Chattanooga Shale in these wells. The Chattanooga Shale, like the Barnett Shale in Texas and the Marcellus shale in Pennsylvania and New York has been overlooked until just recently, when new stimulation techniques have opened the door to development of this source of natural gas,” Hillabrandt stated in the press release.
The company plans to recomplete and boost several wells currently producing limited amounts of crude oil and natural gas. After a few months, the company will analyze the wells and rank them according to their potential and begin stimulating the shale, as well as preparing the gas for transport to an interstate market.
Let us hear your thoughts below: