From the Marcellus Drilling News:
The Ohio Utica Shale’s newest entrant, 1st NRG Corporation, previously announced they would drill on 7,150 acres of the Utica Shale in eastern Ohio (see this MDN story). Yesterday they announced they have secured a $7 million loan which will help finance the drilling.
1st NRG’s announcement is, frankly, a lot of fluff aimed at reassuring investors. It’s big on broad descriptions of the shale plays where they plan to drill, but absent details about how and when that drilling will take place. Here’s the 1st NRG announcement:
1st NRG Corp. has executed a $7,000,000 financing facility.
Convertible Promissory Note
The Company is pleased to announce that further to our October 23, 2012 announcement it has executed the final documentation for the credit facility of up to $7,000,000. The facility will allow the Company to draw in one or multiple tranches as agreed to between the lender and the Company. The Note will mature in three years and will bear interest at 8%. Any outstanding amounts due under the Note may be converted at maturity into the Company’s common stock at the average of the lowest bid for the ten days prior to conversion.
Mr. Kevin Norris, CEO, said, “This facility should enable the Company to initiate development on its core properties in the Powder River Basin, the Utica Shale in Ohio and the Niobrara Shale in Nebraska.”
Utica Shale – Eastern Ohio
Previously announced, the Company is finalizing agreements 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. Recently the Ohio Department of Natural Resources released estimates of the possible Utica-Point Pleasant recoverable reserve potential in Ohio to be between 3.75 to 15.7 trillion cubic feet of natural gas and 1.3 to 5.5 billion barrels of oil. Recently the USGS released its first estimates of the reserve potential of the Utica Shale to be about 38 trillion cubic feet of undiscovered, recoverable natural gas, 940 million barrels of oil and 9 million barrels of natural gas liquids. The USGS estimates included part of Maryland, New York, Ohio, Pennsylvania, Virginia, and West Virginia.
Niobrara Shale – Western Nebraska
The Company also has entered into an agreement which will deliver an Oil and Gas Lease and surface use agreement for 1,370 acres located in Banner County Nebraska. We expect the area to have possibilities to develop the Niobrara Shale which is being compared to the Bakken Shale in North Dakota. Located in the Denver Julesburg Basin which extends from Southeast Wyoming and Southwest Nebraska into Northeast Colorado, the acreage will provide the company with possible oil, natural gas and natural gas liquids development in the Niobrara Shale, as well as the Codell, Greenhorn, D and J Sands. Industry estimates of the possible Niobrara Original Oil in Place (OOIP) are 30 million BOE per section, however recoverable oil, natural gas and natural gas liquids will vary by area, thickness, porosity and fracture systems.
CBM – Northern Wyoming
Clabaugh Ranch – Clabaugh Ranch was acquired in October 2010 and consists of various working interests in forty two producing coal bed methane (CBM) wells. Coal bed methane is a source of clean natural gas. Along with the forty two (1.22 net) drilled and producing wells, the Company holds an interest in eight (6.00 net) permitted locations which we intend to drill in the fourth quarter 2012. The field currently produces 1,200 – 1300 MCFD and we estimate our reserves to be about 4.8 BCF (3P).
About 1st NRG
1st NRG Corp. is an exploration and production company headquartered in Denver, Colorado. The Company currently holds natural gas (CBM) assets 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. We are expanding our activities into unconventional shale potential which includes 1,370 acres in the Niobrara Shale in Western Nebraska and 7,150 acres the Utica Shale in Eastern Ohio. The Niobrara Shale and the Utica Shale not only have potential oil reserves, but also natural gas and natural gas liquids.
See the company website for updates, at http://1stnrg-corp.com*
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.