Denver-based 1st NRG Corp. (OTC Markets: FNRC.PK) has released an update on its operations.
Utica Shale – Eastern Ohio
The company finalized an agreement to develop approximately 7,150 acres in Eastern Ohio, one of the most active areas for oil, natural gas and natural gas liquids exploration in the United States. According to the Ohio Department of Natural Resources, there are more than 250 approved permits to drill in the Utica shale, 15 well drilling, 128 that have been drilled and 47 producing wells. The play continues to develop and expand to the south and west. FNRC is still seeking joint venture partners for its prospect.
Niobrara Shale – Western Nebraska
The company also finalized an agreement which will deliver an Oil and Gas Lease and surface use agreement for 1,370 acres located in Banner County, Neb.
CBM – Northern Wyoming
The company's current CBM properties are characterized by what we believe to be low geologic risk and repeatable development opportunity. Clabaugh Ranch is about 18 miles northwest of Gillette, Wyo. and all of the wells drilled there have encountered developed coal seams in the Warner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall formations.
The Clabaugh Ranch field has had 42 wells drilled through September 30, 2012 with a success rate of 100%. The company's drilling inventory consists of eight permitted well locations (6 net), all of which are CBM resource opportunities. Further development of Clabaugh Ranch is being evaluated. The company is evaluating its drilling program in Wyoming given the recent rise in natural gas commodity prices.
The Spyglass Hill Unit comprises approximately 113,000 gross acres and holds all of the leases within the unit to all depths, including those depths and formations below the CBM Mesa Verde coal formation.
The recent rise in natural gas prices may enable the Denver-based company to initiate a plan of development which will include completing coals currently behind pipe, working over existing wells and drilling our permitted locations.