DENVER, CO -- (Marketwired) -- 12/16/13 -- 1st NRG Corp. (OTC Pink: FNRC), an exploration and production company currently developing and producing coal bed methane reserves (CBM) in Wyoming.
1st NRG Corp. (FNRC) previously announced a plan of development for eight locations in Wyoming's Powder River Basin. FNRC holds 100% of the working interest in these locations before payout, and 66% after payout. These locations are are characterized by what we believe to be low geologic risk and a repeatable development opportunity. The planned development is offsetting wells which all demonstrated developed coal seams in the Schwartz, Anderson, Canyon, Cook and Wall formations. Successfully instituting this drilling plans would potentially significantly increase FNRC production revenues. We have been delayed by another energy company's protests of our planned operations, finally, the protests have been dropped and the Company is finishing the State permitting procedures. We expect to drill the first well by the year-end, 2013.
Our activity to date has been centered on the development at Clabaugh Ranch Field, a CBM field located in the Powder River Basin of Wyoming. We acquired our interest in the 42 wells which currently make up the field in August 2010. As commodity prices of natural gas have improved, renewed maintenance and repairs have increased field wide gross production approximately 50% to over 800 MCFD.
The Company also previously announced an agreement for the development of prospective acreage in SE Ohio particularly seeking Utica Shale potential on an initial block of acreage of approximately 7,000 acres. The Utica shale play continues to grow. The State of Ohio has issued over 1,000 permits for horizontal drilling in the Utica since 2009, and 551 of those permits were issued in 2013. The Company will not operate, but will be carried in the initial vertical test well and participate in future development with a 20% working interest. Currently due diligence is being completed on the leasehold along with the drilling plan for the test well. The Company expects the test well to be drilled in Q1 2014.
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