Drilling Begins at FieldPoint's Lea County Well

- Drilling Begins at FieldPoint's Lea County Well

Wednesday, August 10, 2011
FieldPoint Petroleum Corp.

FieldPoint announced that drilling has begun on the East Lusk 15 in Lea County, New Mexico. The Company has an operating agreement with Cimarex to drill two wells that will target the Bone Spring formation. The total cost for each well is expected to be approximately $5,000,000.

These horizontal wells are planned to be drilled vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 days.

FieldPoint is aware of at least one horizontal well within a few miles of the subject area that had production tests ranging from approximately 400 to 800 barrels of oil per day. However, this is not necessarily an indication of what these wells can be expected to produce. It is also noteworthy that EOG Resources, Inc. has a well to the south of the East Lusk 15 location in section 22.

FieldPoint's President and CEO, Ray Reaves stated, "There are two highly important aspects of this drilling program worth mentioning. First, Cimarex Energy is one of the best in the industry at completing wells in the Bone Spring formation. This is very important for well success and optimal well production. And second, if successful, this drilling program could serve to significantly increase our daily production and proved producing reserve base. Considering those two points together, this becomes quite possibly our most important project to date."

FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two planned wells.

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O&G Pay Identified at Victory Energy's Jones County Well

- O&G Pay Identified at Victory Energy's Jones County Well

Monday, July 25, 2011
Victory Energy Corp.

Victory Energy, through its partnership with Aurora Energy Partners, announced that its Tx. Jones County, Nassau #1 well has reached target depth of 5,325 feet and is now entering completion.

Mudlog and multiple drillstem tests (DSTs) indicate the presence of two oil and gas pay zones exceeding fifty feet in thickness with several others measuring between ten and twenty feet in thickness. A seventy-foot (gross) oil and gas Pennsylvanian age formation will be the focal point of this initial completion. The targeted formation is expected to produce both oil and gas.

With a successful completion, the well will be production tested to determine rate, gas-to-oil ratio and pressure. An assessment of the type and size of production facilities will be determined by testing. Due to the high gas cut encountered during drilling, a gas delivery line is already being assessed.

This multiple pay zone discovery offers the opportunity for additional development and drilling on held acreage. The company, through its partnership with Aurora Energy Partners, holds a working interest of no less than 1.5 percent and up to 2.5 percent for each acreage block acquired.

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Mid-year Well Permitting Set to Surpass 2010 Numbers in N. Colo. County

- Mid-year Well Permitting Set to Surpass 2010 Numbers in N. Colo. County

Monday, July 18, 2011
Greely Tribune, Colorado
by Sharon Dunn, Greeley Tribune, Colo.

Weld County oil and gas drilling permits are already taking over last year's pace, but that's just part of the picture.

Oil and gas drilling activity is at one of the highest levels in years, not only when it comes to drilling permits, which are good for two years, but actual activity.

Though evidence is apparent in the many oil and gas trucks burning a path along U.S. 85, it's also just as busy in the county recording office as it was last year.

Gaye Florio, the manager of the recording department at the Weld Clerk and Recorder's Office in north Greeley, said landmen still line up daily to research land titles on the office's computer systems. It's been the same story since early 2010, shortly after a well named "Jake" in northern Weld County spewed its riches, and subsequently touched off the fury to get the most out of the Niobrara shale formation.

"It hasn't changed. We've got people waiting now," Florio said Thursday morning. "We get new people all the time anymore. There for a while, we had the same (people) over and over, and now it's different all the time."

As of July 12, halfway through the year, the number of drilling permits issued in Weld County hit 1,195 -- a 32 percent increase in the last month -- easily topping the number of drilling permits throughout the state. The permit numbers are on track to surpass last year's 2,152 permits issued in Weld.

Though permitting is not the whole story, when it comes to activity, it is a good measure, said Thom Kerr, permitting manager with the Colorado Oil and Gas Conservation Commission, which evaluates permit requests and issues them.

"It is a good barometer, because it shows (oil companies') interest. If they're not interested, they're not going to file permits. At any time, we could have a huge flurry of permits, which we have," Kerr said. "We've been receiving over 100 permits a week for the last month."

The more interesting item for Kerr halfway through this year is the number of active drilling permits that have yet to do be acted upon. Permits are good for two years. As of June 16, the number of active permits was at roughly 5,000.

"That's 5,000 that have not been consummated or haven't expired, or haven't been drilled," Kerr said. "Those will keep them busy for a little while."

By the first week of July, Weld County had 33 rigs operating, almost half the state's 75 active total active rigs.

"You're seeing a lot of that," Kerr said. "That's why the permit activity probably isn't really reflective of the current level of drilling activity."

Since "Jake" spewed in late 2009, oil companies have flocked to the area to buy up leases and try their luck at the tight shale 7,000 feet below the surface.

The well also heralded a new wave of horizontal drilling activity, which is already setting records, and now sits at 26 percent of all drilling activity in the state, with the majority of horizontal wells in Weld.

Of the 378 horizontal drilling projects permitted so far this year, 309 are in Weld County. Last year, there were 462 horizontal wells permitted, 321 of which were in Weld. But only 151 of those wells were completed, meaning more is to come.

"Clearly it will be a record year for horizontal drilling," Kerr said. "No doubt, it's very high activity. If you look, 26.1 percent of all permits are horizontal. That's just so impressive. It had not been envisioned until the Niobrara touched that off. To get that resource, you need to drill it horizontal. It's the way to do it."

And because of the renewed interest in the Niobrara, Weld County numbers surpassed Garfield County for the second year after consistently coming in No. 2 in the state for years.

The activity has even prompted the Weld Clerk and Recorder to seek a part-time employee to make copies for the flocking land researchers.

"We have 10 machines, and we have nine to 10 where we've let them bring in their own computers," Florio said. "They're here all the time."

Copyright (c) 2011, Greeley Tribune, Colo. Distributed by McClatchy-Tribune Information Services.

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Gas Permits, Leases Accumulate in Beaver County

- Gas Permits, Leases Accumulate in Beaver County

Tuesday, June 21, 2011
Knight Ridder/Tribune Business News
by Bill Utterback, Beaver County Times, Pa.

While five months have passed since a natural gas well was last drilled in Beaver County, gas-related paperwork continues to accumulate.

The Pennsylvania Department of Environmental Protection has issued 10 drilling permits for Beaver County sites through the first six months of 2011, including one in May and six in June, according to the DEP online records.

Rolling Acres management received four drilling permits, three this month, for property in South Beaver Township, according to DEP records. All four of the permits are for horizontal natural gas wells to be developed by Chesapeake Appalachia.

Permits were also issued this year for one property in Economy (two permits for the site, both for gas and oil drilling, to be developed by Airdale Oil & Gas); and four Ohioville properties (including two gas permits and two combined gas/oil permits, to be developed by Chesapeake Appalachia).

Of 15 DEP drilling permits issued for Beaver County sites over the past 18 months, only one, located in South Beaver, has been developed.

Permits granted to two sites in Franklin Township and one in Independence Township in 2010 have likely expired because, according to DEP spokesman John Repetz, they must be used within a year.

A permit was issued to a Hanover Township site on Nov. 3, 2010.

Keith Hohenshel, council president in Industry, said borough council was approached by Chesapeake Appalachia representatives recently about the potential of developing a well on Engle Road, but no formal application has been made to the borough.

"It was nothing set in cement," Hohelshel said. "They still have some work to do. They can't do anything until they get a permit (from the borough)."

But Chesapeake Appalachia is continuing to lease gas rights in Beaver County. The company has filed 1,770 documents with the Beaver County Recorder of Deeds office in 2011, an average of more than 10 per day. Chesapeake Appalachia filed 138 documents in the first 17 days of June.

Copyright (c) 2011, Beaver County Times, Pa.

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Stark County Commission Denies Tax Exemption to Oil Company

- Stark County Commission Denies Tax Exemption to Oil Company

Thursday, June 09, 2011
Knight Ridder/Tribune Business News
by Sean M. Soehren, The Dickinson Press, N.D.

Stark County Commission members denied the first-ever oil-related company request for a property tax exemption during a meeting at the Stark County Courthouse Tuesday.

Stark County Tax Director Diane Brines said after the meeting that the exemption would have allowed for more than $250,000 each year for the next five years.

Commissioners said they did not want to set a standard of giving exemptions to oil companies.

"We have not issued exemptions in the oilfield at this point, but I guess no one has come forward to us before either," Brines said during the meeting.

The request from EDOG Logistics, LLC, of Wichita, Kansas, was for a 100 percent five-year property tax exemption eligible under the new construction and expansion clause of the North Dakota Century Code.

"This is a difficult one for us to allow for exemption when the industry is doing so well," Commissioner Jay Elkin said during the meeting, adding that oil production has been very profitable and that other companies have not asked for exemptions.

EDOG plans on adding to the facilities where oil is transferred from storage tanks to transport railcars located northwest of Dickinson, representative John C. Wadsworth said. The plant plans to construct three oil storage tanks, truck unloading bays, pipeline receiving connections and railway loading for 12 railcars. Wadsworth said the estimated value of the improvements would create a $20 million asset.

"The plant will be a benefit to Stark County and the city of Dickinson," Wadsworth said, adding that it will create about 75 contractor jobs during construction and 15 full-time positions during operation, with growth estimated up to 35 direct positions in the next two years.

Commission Chairman Ken Zander said the county wants to be a "good neighbor" and support development, but he didn't want to set a precedent and the exemption would mean lost funding for other entities.

"We don't want to start allowing or giving a company or private developer an exemption that affects other taxing entities, such as the school district or city of Dickinson, without input from them and how they would be affected," Zander said.

Commissioner Pete Kuntz agrees.

"If we give it to one company, we will be expected to give it to others," he said during the meeting.

Stark County recently granted exemptions to an ethanol plant near Richardton, Baker Boy and Steffes, but they have not been total exemptions. The companies work with a graduated program where the amount exempt decreases over the years, Zander said.

Stark County States Attorney Tom Henning said EDOG could resubmit the request under different conditions, such as a smaller exemption percentage or a graduated program. Also, he said commissioners could design an exemption program that would feasibly fit the budget.

After the meeting, Wadsworth said EDOG was still excited to bring a profitable asset to the area.

Copyright (c) 2011, The Dickinson Press, N.D.

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Bucks County Republican Looks for Sponsor on Shale Fee

- Bucks County Republican Looks for Sponsor on Shale Fee

Thursday, June 09, 2011
Knight Ridder/Tribune Business News
by Brad Bumsted, The Pittsburgh Tribune-Review

A Bucks County Republican is asking legislators to co-sponsor her shale impact fee which she says is designed to try to win GOP Gov. Tom Corbett's approval.

Corbett has said any measure must be a fee and not a tax and the main purpose must be to help compensate municipalities for damages gas drilling causes. He has said revenue from a fee should not go into the state's General Fund.

For starters, Rep. Marguerite Quinn says her proposal is a fee. It is not based on gas well production nor is it tied to the price of natural gas like a half-dozen or so tax proposals pending in the House and Senate, she said. It's a flat rate on a declining scale, starting at $50,000 per well.

While the state Department of Revenue would collect the fee, the revenue would not go into the General Fund, Quinn told colleagues in a memo seeking co-sponsorship.

"I've been working on it -- something that does meet the governor's criteria," Quinn said today. "I tried to respect the governor's call for no tax. I made it a simple impact fee."

Asked about Quinn's proposal, Kevin Harley, Corbett's spokesman was non-committal. "Gov. Corbett has said he is open to an impact fee. But he wants to wait until his Marcellus Shale Advisory Commission issues a report."

The commission, headed by Lt. Gov. Jim Cawley, is attempting to quantify local drilling costs. The report will be issued July 22 while lawmakers are likely on summer recess after adopting a state budget by June 30.

Quinn said she plans to meet with Cawley to outline her proposal.

Under Quinn's proposal, half of the revenue would be deposited into an "impact mitigation fund" for use by counties and municipalities hosting drilling. That would cover fire, police and emergency service costs, as well local water issues, and repairing roads and bridges.

Twenty-five percent of money would go for statewide environmental projects and hazardous waste cleanup. The money would go to a state fund for environmental use called Growing Greener. It would be used for projects such as watershed protection, acid mine drainage abatement and cleanup and plugging of wells.

And 20 percent of the revenue would go to the state Motor License fund for road and bridge repairs. Five percent would go to local conservation districts.

Quinn says she is calling her plan a fee on shale, not Marcellus shale. The point is to cover drilling in deeper layers beneath the Marcellus shale formation such as the Utica formation.

"We don't want to be shortsighted in structuring this and have to re-invent the wheel later," she said.

Copyright (c) 2011, The Pittsburgh Tribune-Review

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Breitling Spuds Well in Hardemann County

- Breitling Spuds Well in Hardemann County

Tuesday, June 07, 2011
Breitling O&G Corp.

Breitling has spud the Breitling-Stepp prospect in Hardemann County, Texas on May 28, 2011.

The Stepp NE well is scheduled to be drilled to a depth of approximately 8600' or to a depth sufficient to test the Mississippian Chappel reef. The Prospect is located 7 miles southeast of the Quanah townsite. The Mississippian-aged rock is a fractured, often vugular limestone which tends to be highly dolomitized.

Management anticipates the well will reach total depth in about 18 days. Well completion and testing should begin during the last week of June.

Breitling Oil and Gas CEO Chris Faulkner stated, "We are excited to continue our drilling efforts in Hardeman County with the Breitling-Stepp #1." Faulkner added, "The Mississippian Chappel has produced some great wells for us in the area and we feel confident that our 3D-seismic shoot has found another interesting anomaly within our acreage position here."

An additional 4 wells can be drilled if commercial production is found in the initial test well. Breitling has current oil and gas exploration projects all over the United States.

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Breitling Concludes Ops at Duval County Well

- Breitling Concludes Ops at Duval County Well

Friday, June 03, 2011
Breitling O&G Corp.

Breitling announced that the Breitling-Diego Garcia #1 in Duval County, Texas is being completed as a possible oil and gas producer after reaching a total vertical depth of 6,250 feet.

The well was subsequently logged by Baker Hughes and based on analysis by Breitling's engineers and geologists as well as Baker Hughes' analysis of the Diego Garcia #1 logs. Chris Faulkner, CEO of Breitling Oil and Gas, said, "We had some good shows through the Pettus and Yegua and the well logs confirmed that."

Baker Hughes Logging Company indicated that the most favorable zones for hydrocarbon production were a Pettus Oil Sand at 5446', gas and oil in an upper Yegua Sand at 5636', and Yegua gas sands at 5703' and 5960'. Laboratory analysis of side wall cores and Formation Testing data confirmed the presence of oil and gas in these formations.

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How to Make Money Off Drilling Becomes Issue in Pa. County Race

How to Make Money Off Drilling Becomes Issue in Pa. County Race

Thursday, May 05, 2011
Knight Ridder/Tribune Business News
by Timothy Puko, The Pittsburgh Tribune-Review

All four candidates for Allegheny County Executive want to drill for gas on county-owned land, but how to do it has become a matter of debate in the weeks before the May 17 primary.

Two candidates agree. Democrat Rich Fitzgerald of Squirrel Hill and Republican D. Raja of Mt. Lebanon want a traditional deal: The county should lease land to a gas driller for an up-front fee and a share of the gas royalties.

"Like anyone else, the county should seek the best deal possible as market prices allow," Raja spokesman Mark Harris said in an e-mail.

But taxpayers fall short in that kind of deal, said Mark Patrick Flaherty of Mt. Lebanon. Flaherty, a Democrat and county controller, advocates a joint venture with a drilling company on 9,200 acres at Pittsburgh International Airport and the county airport in West Mifflin. The county would have to borrow to help pay for the drilling, but would get a larger profit in the end, he said.

Both Fitzgerald and Republican candidate Chuck McCullough of Upper St. Clair opposed Flaherty's idea on Wednesday. The Fitzgerald campaign released a commercial on YouTube calling it a risky scheme that would be a big loss if the wells turn up dry.

McCullough called Flaherty's plan illegal. He contends state law prohibits municipalities from doing "any proprietary or private business."

Flaherty denied that.

"All you would do is be negotiating different terms of the lease," he said. "Instead of most of the lease proceeds going to the gas company, the residents would be getting more of a deal."

McCullough wants to sell and privatize the airports. The county should be able to get a larger sale price if the mineral rights are part of the deal, he said. It's safer, he added. "You're not supposed to be putting taxpayers' dollars at risk in business investments, and you're not supposed to be competing with them either," he said.

But selling an asset can be risky, too, Fitzgerald said. Leasing is the safest thing to do; that could bring up-front payments of $3,000 to $5,000 per acre and another 15 percent to 20 percent in royalties as the gas is extracted over several decades, he said. The county wouldn't face the liability that comes from explosions and blowouts at well sites, he added.

"I just don't think we should risk taxpayers' dollars," Fitzgerald said.

Copyright (c) 2011, The Pittsburgh Tribune-Review. Distributed by McClatchy-Tribune Information Services.

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Southern Bay Starts Drilling in Fayette County

Southern Bay Starts Drilling in Fayette County

Friday, April 29, 2011
Eureka Energy Ltd.

Eureka announced the spudding of Blackjack Springs Unit #1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA.

As of April 27, 2011 local time, the operator, Southern Bay advised that the well had reached a depth of 2,080 ft and was drilling ahead. The well is planned to target the Eagle Ford Shale at a vertical depth of approximately 10,500 feet with a horizontal of around 6,000 feet.

The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.
The operator, Southern Bay, is a wholly owned subsidiary of GeoResources Inc.

United American Petroleum Drills Ahead in Bastrop County

United American Petroleum Drills Ahead in Bastrop County

Friday, April 15, 2011
United American Petroleum Corp.

United American Petroleum provided an update on its drilling development program for its Bastrop County, Texas operations. The Company's Gabriel Rosser Project consists of two strategic phases. Phase 1, drill new proposed locations and begin initial pressurization of existing wells and Phase 2, continue development of undeveloped acreage on the Gabriel lease, which from geophysics indicates an undeveloped serpentine mound to the east of the existing Gabriel wells.

The Gabriel Rosser Project is a serpentine development and re-pressurization operation consisting of two mounds, on adjacent acreage; the Gabriel and Rosser lease. Phase 1 consists of new development drilling in the Gabriel mound and secondary pressurization of a developed Rosser serpentine mound. The Company will continue to produce its Rosser #4 well and will equip the Gabriel #9 well for immediate production. Upon completion, the Company will drill the Gabriel #16 well, an offset and replacement well, to the Gabriel #4 oil well. The expected initial production is estimated to be approximately 100 to 200 BOPD and 50 to 100 MCFGPD. United is currently in the process of obtaining a permit to drill the Gabriel #16 well.

The Gabriel #4 well initially produced at 426 BOPD from a 102 ft. thick serpentine section. The total depth for the new well should be approximately 3,180 ft. and United expects serpentine sections of 150 to 170 ft. thick. The Gabriel #16 location had high surface geochemical hydrocarbon readings of 68 ppm (parts per million). Currently, Gabriel #4 has 400 psi on casing, and 1,400 ft. of oil in casing above perforations at 3,050 ft. However, the Gabriel #4 has water encroachment from the Austin Chalk perforations below the serpentine and the Company will need to isolate the water to optimize production from this well. Current surface casing pressure is 400 psi, which is all natural gas.

In February 2010, oil was found in the Gabriel #4 well at a depth of 1,320 ft., or 1,700 ft. above the perforations. As oil is produced from the new Gabriel #16 well, gas released from the oil will be used to begin gas pressure maintenance on a portion of the mound complex. We believe an additional (2) wells could be drilled near the Gabriel #4 and #16 locations.

United will need to hook up a compressor at the Rosser #2 well and begin pressurization of the Rosser mound. This secondary recovery gas injection produces from GAGD (gas assisted gravity drainage) and has proven to be effective. This will begin to pressurize the Rosser mound and increase production in the existing Rosser #4 well once the squeeze has been completed. Upon completion, the Gabriel #17 will be drilled near the Gabriel #4 and Gabriel #16 locations. We believe an additional 2 to 3 wells could be drilled on the Rosser mound.

Phase 2 consists of expanding the undeveloped portion of the Gabriel lease. A surface magnetometer survey was run over the Gabriel property. Serpentines traditionally have a strong magnetic signature and many mounds have been drilled solely from magnetometer surveys. The magnetometer indicated a magnetic buildup in approximately 160 acres of the Gabriel lease between the Gabriel #3 and Gabriel #4 wells.

Michael Carey, President of United American Petroleum said, "We are very enthused with the results of the project and tests to date. The completion techniques and utilization of the produced gas to re-pressurize the zone makes this project unique in the sense that we could actually reverse the traditional depletion curve and produce more hydrocarbons at an increasing rate as the zone re-pressurizes over time. With these techniques, coupled with the potential for additional drilling locations, we feel this will become a valuable asset to United as well as create a platform for utilization in other areas with similar geological parameters."

Paradigm to Acquire Navarro County Lease

Paradigm to Acquire Navarro County Lease

Monday, April 11, 2011
Paradigm O&G Inc.

Paradigm has entered into a Letter of Intent Agreement to acquire the Skinner Lease located in Navarro County, Texas.

The Skinner lease is a 70 acre lease that was previously producing 450 barrels of oil per month from 11 existing wellbores. Initially the property produced at a rate of 1500 barrels of oil per month. The Lease comes complete with fully equipped pumping units on the well bores and the necessary infrastructure to allow for production turn on.

The Company plans to rework the existing wells and test each well utilizing their Transportable Enhanced Oil Recovery Platform (T-EOR) to determine each wells production rate. Additional enhanced oil recovery techniques will then be applied. The Company believes initially production rates of 450 barrels per month can be achieved with upward growth expected with further treatment and methods.

"Since the released our Joint Venture Oil Production Program that utilizes the Transportable Enhanced Oil Recovery Platform, we have been introduced to a number of opportunities in Navarro County. With the recent signing of 2 Joint Venture Oil Production agreements and the Oil production acquisition LOI we announced on April 5, 2011 it makes sense to build our portfolio in this region," said Paradigms President and CEO Ron Polli, "We are excited about the number of opportunities we are reviewing that appear to fit our criteria and as a result are attempting to advance our activities to enable us grow our portfolio and asset value."

A definitive purchase agreement is to be completed over the next 45 days at which time terms of the agreement will be disclosed. On closing of the definitive agreement, Paradigm will be assigned the lease and operate the property under their bond.

Green Equity to Acquire Property in Neuces County

Green Equity to Acquire Property in Neuces County

Tuesday, April 05, 2011
Green Equity Holdings Inc.

Green Equity has signed a Letter of Intent (LOI) with a Houston-based private company to acquire a 250-acre oil and gas property located in Nueces County, Texas.

The property contains one producing well and proved undeveloped locations, which the Company anticipates to drill and complete in the next 60 days. Under the terms of the LOI, Green Equity Holdings will acquire the property for a price of $2,000,000, paid for in cash, promissory notes and/or Green Equity Holdings' stock.

"Our LOI is aligned with our new strategy to focus on opportunities within the oil and gas industry," said Raymond Dias, president of Green Equity Holdings, Inc. "We plan to acquire natural resource properties that contain already producing wells or those that can be brought into production in the near-term. We believe the timing is right to acquire oil and gas wells at a discount to the market, and then turn them into productive, cash-generating assets for the benefit of our shareholders."

The purchase and sales agreement is expected to be signed by April 29, 2011, and is subject to the approval of the companies' Board of Directors.

Breitling Concludes Ops at Pottawatomie County

Breitling Concludes Ops at Pottawatomie County

Tuesday, April 05, 2011

Breitling O&G Corp.

Breitling announced that the Breitling-Magnolia #2 in Pottawatomie County, Oklahoma, is being completed as a possible oil and gas producer after reaching a total vertical depth of 4,500 feet.

From log analysis, the well encountered several potentially productive zones over a gross interval in the Earlsboro Sand formation from 3538 feet to 3846 feet, the Hunton Limestone from 4160 feet to 4178 feet, and the Upper Hunton from 4130 feet to 4146 feet. Testing and completion plans were finalized April 2 and a completion rig and crew are scheduled to move on location April 12, 2011.

Chris Faulkner, CEO of Breitling, said, "As predicted after our findings in the Magnolia #1, the Magnolia #2 encountered multiple potential pay zones and looks to be a good well." Faulkner added, "The Magnolia play has proven very successful and we are thrilled with the outcome."

Breitling ran a triple combo log and decided to run pipe based on analysis by Breitling's engineers and geologists as well as Halliburton's analysis of the Magnolia #2 logs. Joe Simo, Chief Geologist for Breitling, said, "The limestone showed good visual porosity, fracturing, oil staining and bright blue fluorescence with very strong odor."

Aztec Drills 2nd Liberty County Well

Aztec Drills 2nd Liberty County Well

Monday, April 04, 2011

Aztec O&G Inc.

Aztec announced the successful completion of its first well in Liberty County, the Dyco Blanding #1. Aztec now announces the successful drilling of its second well in Liberty County. The Blackstone 80 #1 well was recently completed in the Cockfield Channel sand that is a known prolific producer in the area. Initial production rates averaged approximately 50 to 60 barrels of oil per day.

"Based on the results of these two wells, we believe we have several additional potential locations for future development in this county," stated Waylan Johnson, President of Aztec Oil & Gas, Inc. Mr. Johnson further stated, "As a result of the foregoing, we anticipate that Aztec will participate in at least 3-5 wells in this field and surrounding areas in 2011."

Lucas Energy Up on JV With Marathon Oil Unit in Texas

Lucas Energy Up on JV With Marathon Oil Unit in Texas



Lucas Energy (LEI) is up after it says it entered into a Joint Venture agreement with Marathon Oil (East Texas) LP, a subsidiary of Marathon Oil Corporation (MRO) to develop the Eagle Ford and Buda formations in Wilson County, Texas.

The Marathon affiliate has acquired 50% of the leasehold interest rights, representing approximately 1,000 net acres (below the base of the Austin Chalk formation) held by Lucas in a majority of Lucas' leases in Wilson County, Texas.

Marathon Oil Corporation's subsidiary will be the operator of the joint venture, but Lucas will still own and operate rights above the Eagle Ford, primarily the Austin Chalk formation.

Westmoreland County Joins Shale Consortium

Westmoreland County Joins Shale Consortium

Friday, March 25, 2011
by  Rich Cholodofsky, Tribune-Review, Greensburg, Pa
Knight Ridder/Tribune Business News

Westmoreland County commissioners on Thursday voted to join a consortium of landowners as part of a move that could lead to the first Marcellus shale deep gas well on county property on an historic site dating back to 1773.

The unanimous vote did not directly authorize a lease for any company drill at the more than 140-acre property on which the Historic Hanna's Town tourist attraction sits. The town, established as the first county seat west of the Allegheny Mountains, is operated by the Westmoreland County Historical Society.

"We're looking at all properties so we can explore the natural resources on behalf of taxpayers of Westmoreland County," said Commissioner Charles Anderson.

The commissioners said no deal to lease the land was imminent, but attorney John Ward will handle negotiations for the county and nearly two dozen surrounding private property owners.

Those owners and the county will negotiate as a group with oil and gas companies that wish to lease land to install deep well drilling platforms to harvest natural gas from the lucrative Marcellus shale formation.

"I don't think Pennsylvania or this county can write off a valuable reserve such as a pool of natural gas," said Commissioner Tom Balya.

Before the vote, East Huntingdon resident Jan Kiefer asked county officials to consider advocating against Marcellus shale drilling, saying it was unsafe and could potentially damage the environment.

"People are polluting our air and water and it's affecting our health," Kiefer said.

Commissioners said they can't restrict local governments from authorizing Marcellus drilling, and then voted to join the consortium.

"We have to do it smart and we have to stay on top of it," Anderson said.

Commissioner Ted Kopas said revenues generated from leasing drilling rights and gas royalties would be used to provide a dedicated source of revenue to build a new visitors center at Historic Hanna's Town.

The county and the historical society plan to build a $4.2 million center at the site. The county has given the project a $1 million grant, while about half of the overall project cost has been raised.