1st NRG Corp Operational Update
1st NRG Corporation (OTCBB: FNRC.PK) provides an update on the results of operations in Wyoming Powder River Basin.
Denver, CO, January 23, 2012 --(PR.com)-- Operations Update
Clabaugh Ranch - Gross production currently averages approximately 1,500 – 1,800 mcf (thousand cubic feet) per day ("mcfd") which on a net basis to the Company is approximately forty mcfd. Clabaugh Ranch was acquired in October 2010 and consists of various working interests in forty two producing coal bed methane (CBM) wells. Along with the forty two (1.22 net) drilled and producing wells, the Company holds an interest in twenty one (6.05 net) permitted locations and fifteen (1.10 net) future locations.
For the nine months ended September 30, 2011, the Company received an average gross price of $ 3.792/mcf, less transportation and production taxes which averaged $1.342/mcf, resulting in a net gross margin of $ 2.45 per produced net mcf. Net production to the Company for this period was 10,544 mcf.
Today, the Company announced that it has signed a Letter Of Intent setting the general terms and conditions under which it would enter into a definitive contract to purchase Oil & Gas Leases underlying approximately 14,300 acres in the Powder River Basin of Wyoming. The anticipated purchase price will be approximately $2.5 million dollars. Independent third party engineering indicates over 33 BCF in natural gas reserves. The project will develop coal bed methane reserves (CBM) in target coal bed formations which are part of the Tongue River Member of the Fort Union formation.
The Company is also pursuing the acquisition of interests in a field producing CBM consisting of fifteen producing wells, twelve wells to be completed and three locations remaining to be drilled. The Company has not yet obtained independent third party reserve estimates at this point.
Management Comments
Mr. Kevin Norris, CEO said “We have made a number of advances for 1st NRG and its shareholders. The financing in particular represents many months of arduous work which will allow us to pursue our business strategy of acquiring CBM properties. Depressed natural gas prices have created numerous acquisition opportunities while we find CBM is still economically viable.” Mr. Norris went on to say; “Even with all the recent publicity surrounding shale gas plays, the cost to produce and mcf of coal bed methane remains much lower than any other gas play, conventional or un-conventional, on-shore or off-shore, and this allows 1st NRG to make money even in today’s pricing environment.”
About 1st NRG
1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production company headquartered in Denver, Colorado. The Company is currently pursuing prospective acquisitions in coal bed methane (CBM) fields in the Powder River Basin of Wyoming. We own working interests in producing and prospective CBM wells in the Clabaugh Ranch Field, a development of 6,025 gross acres in the Powder River Basin in northeast Wyoming. The Powder River Basin is a major source of coal bed methane - clean natural gas.
See the company website for updates, at http://1stnrg-corp.com
Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although 1st NRG believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in production which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.
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Clabaugh Ranch - Gross production currently averages approximately 1,500 – 1,800 mcf (thousand cubic feet) per day ("mcfd") which on a net basis to the Company is approximately forty mcfd. Clabaugh Ranch was acquired in October 2010 and consists of various working interests in forty two producing coal bed methane (CBM) wells. Along with the forty two (1.22 net) drilled and producing wells, the Company holds an interest in twenty one (6.05 net) permitted locations and fifteen (1.10 net) future locations.
For the nine months ended September 30, 2011, the Company received an average gross price of $ 3.792/mcf, less transportation and production taxes which averaged $1.342/mcf, resulting in a net gross margin of $ 2.45 per produced net mcf. Net production to the Company for this period was 10,544 mcf.
Today, the Company announced that it has signed a Letter Of Intent setting the general terms and conditions under which it would enter into a definitive contract to purchase Oil & Gas Leases underlying approximately 14,300 acres in the Powder River Basin of Wyoming. The anticipated purchase price will be approximately $2.5 million dollars. Independent third party engineering indicates over 33 BCF in natural gas reserves. The project will develop coal bed methane reserves (CBM) in target coal bed formations which are part of the Tongue River Member of the Fort Union formation.
The Company is also pursuing the acquisition of interests in a field producing CBM consisting of fifteen producing wells, twelve wells to be completed and three locations remaining to be drilled. The Company has not yet obtained independent third party reserve estimates at this point.
Management Comments
Mr. Kevin Norris, CEO said “We have made a number of advances for 1st NRG and its shareholders. The financing in particular represents many months of arduous work which will allow us to pursue our business strategy of acquiring CBM properties. Depressed natural gas prices have created numerous acquisition opportunities while we find CBM is still economically viable.” Mr. Norris went on to say; “Even with all the recent publicity surrounding shale gas plays, the cost to produce and mcf of coal bed methane remains much lower than any other gas play, conventional or un-conventional, on-shore or off-shore, and this allows 1st NRG to make money even in today’s pricing environment.”
About 1st NRG
1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production company headquartered in Denver, Colorado. The Company is currently pursuing prospective acquisitions in coal bed methane (CBM) fields in the Powder River Basin of Wyoming. We own working interests in producing and prospective CBM wells in the Clabaugh Ranch Field, a development of 6,025 gross acres in the Powder River Basin in northeast Wyoming. The Powder River Basin is a major source of coal bed methane - clean natural gas.
See the company website for updates, at http://1stnrg-corp.com
Forward-Looking Statement
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "feels," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although 1st NRG believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in production which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.
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Contact
1st NRG Corp
Kevin Norris
303.378.8852
1stnrg-corp.com
Kevin Norris
303.378.8852
1stnrg-corp.com
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