Source: High Plains Gas
High Plains Gas, Inc. (OTC:NXPN) has officially taken over the operations of Marathon Oil's (NYSE:MRO)Powder River Basin natural gas wells known as the North and South Fairway assets effective December 1, 2010.
These assets consist of 1,614 coal bed methane wells with associated flow lines and over 155,000 net acres producing 17,000 gross Mcfpd. 803 of the recently acquired wells are not currently producing gas and are considered idle wells.
"The company's primary focus in its first months of operation is an aggressive identification and reactivation of idle wells that have historically produced significant levels of natural gas," says Greg Greenough, VP of Operations. "With the previous HPG wells we have recompleted, we have averaged a 300% increase in daily gas production per well," continued Greenough.
Greenough also commented that the gas coming from these wells is "pipeline spec" gas, which means it is considered clean gas that is ready to be marketed.
In the month of December, 2010 HPG reactivated 52 of the newly acquired idle wells. A major focus of the Company will be the reactivation of idle wells and stimulation of select wells within the various fields identified. HPG has also recently installed a 150hp electric screw compressor in the previously idle Kingsbury field and of the existing 247 wells in that field it plans to reactivate another 75 idle wells by the end of January.
"The Kingsbury field has been idle for over a year now and with the installation of the new compressor we anticipate these newly activated wells will begin to produce an impressive volume of gas. I estimate Kingsbury could produce around 1,000 Mcfpd," continued Greenough.