Unbridled Energy signed a Letter of Intent with a local operator to purchase additional acreage around its Chautauqua Lake Property. The purchase includes a working interest in 24 wells and over 12 miles of 2D seismic data across the property. The company plans to drill additional Bass Island wells and further develop the remaining potential in existing wells.
The acquisition also includes the deep rights below the Medina/Whirlpool formations under Unbridled’s existing 13,280 acres and 960 acres of mineral rights. The company believes that the deep rights will offer even more potential in new tight gas sands and shales under the acreage; accompanying seismic data will help evaluate the potential.
The company also announced that workovers are now completed on all 11 Medina/Whirpool gas wells on the property and went smoothly with minimal expenses. One of the Bass Island oil/gas wells has been placed back into production and an additional well will be equipped with a conventional rod and beam pumping unit and placed into production in the next 60 days.
The company is in late-stage discussions with an operator to partner on drilling multiple test wells on Unbridled’s 23,000 acres. Under current conditions, Unbridled will be the designated operator and will jointly design the drilling, completion, and testing program in the Devonian shales with its new partner. A Letter of Intent is expected to be signed shortly.
Unbridled is also in negotiations with several operators on joint venture opportunities in the Appalachian Basin area for drilling horizontal and infill wells. Two of the operators showed their deep interest in teaming up with Unbridled to utilize their technical expertise. The Company stated that it will keep shareholders updated as discussions progress.
President & CEO, Joe Frantz, commented, “In the U.S., we are excited about expanding our position in New York and Ohio. We are close to completing a partnership agreement with another well known and respected operator to drill and test the Devonian shales in Ohio. AFE’s are being developed to drill the new wells in New York and Ohio and rigs will be available. Overall, we are executing our plan to exploit the reserves in New York and test the shale in Ohio with horizontal and vertical wells. South of our Ohio position, in West Virginia, Cabot has recently announced some excellent production results from horizontal shale wells. We look forward to similar success on our acreage. We also have the Clinton sandstone under portions of our acreage to exploit. In our Tri-State play, we are encouraged with JV opportunity negotiations. It takes time to negotiate the details of these deals, but we look forward to executing a significant transaction by early Q4 2007, with drilling to begin by year-end or early Q1 2008.”
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