Jumeirah Resources PLC - Announces Joint Venture Development Agreement for Area of Interest
Jumeirah Resources PLC through its wholly owned subsidiary, Paragon Energy Corporation, has entered into a Joint Venture Development Agreement to develop a Mutual Area of Interest in the Northwest Premont Field in Jim Wells County Texas.
- (1888PressRelease) March 08, 2012 - Jumeirah Resources PLC. FRANKFURT: FQB: JMR. The Board of Directors are pleased to announce that Jumeirah Resources PLC through its wholly owned subsidiary, Paragon Energy Corporation, has entered into a Joint Venture Development Agreement to develop a Mutual Area of Interest in the Northwest Premont Field in Jim Wells County Texas. The Field covers 4,500 acres and is part of the Gulf Coast Trend in South Texas.
Reserves are estimated to contain over 20 million barrels of oil (bbls) and 20 billion cubic feet (bcf) of natural gas from as many as 15 potentially productive zones per well. The initial phase of the Development Agreement outlines the drilling and completion of 20 new wells and the re-entry of 8 additional previously drilled and completed shut-in wells.
Jumeirah Resources PLC has advanced the initial participation capital of $152,000 USD and is informed by the Joint Venture Operator, Kidd Production Company of Texas, RRC Operator No. 458825, that the permitting process will be initiated by March 9, 2012. The permitting process varies in duration between 3 days to 10 days . It is anticipated that the drilling of the Guerra #3 will begin as early as March 15, 2012.
Jumeirah Resources PLC is participating in the First well, the Guerra #3, to be drilled under the Joint Venture Development Agreement at a level of 10% for an investment of $152,000 USD. Jumeirah Resources PLC has the first opportunity to make the company's investment in the Joint Venture the initial or first well-drilled and completed under a two phase, 20 well development plan.
The purpose of the development of the Northwest Premont Field is to create value and income by re-entering certain wells, which have been tested and have proven oil and gas producing zones, and the drilling of strategically located wells containing multiple zone production in a manner that produces high rates of stable production; proving the reserves of the underlying pay zones for further development of the field through production.
To date the fields operator has re-entered two wells, the Guerra #2 and the Garcia #2. The Guerra #2 was drilled to 4,000 feet and tested positively for oil and gas in 12 potentially productive sand zones encountering 118 net feet of pay.
AP Yang, Petroleum Engineers of Houston Texas ran 45 days of open flow tests to draw down the pressure of each of the productive zones in the well. The absolute open flow rate calculations indicated the lobe flow of the Laughlin oil sand deposit tested at 15,541,000 cubic feet gas per day. The upper lobe flow tested at 5,063,000 cubic feet per day. The combined total was 20,604,000 cubic feet per day from 16 feet of net pay zone for this one well with multiple pay zones.
Preliminary Reserves Estimates for the Guerra #2 are 100,000 to 150,000 Barrels of oil and 1.5 Billion Cubic Feet to 2.5 Billion Cubic Feet of natural gas.
The second re entry well the Garcia #2 is co-mingling two gas zones with production averaging 1.0 million cubic feet of gas per day. An Oil zone is also producing an average of 39 barrels of oil per day. Reserve estimates for the Garcia #2 will have similar potential production levels as the Guerra #2.
The current price of gas ranges between $2.75 and $3.00 per mcf.
20 million cubic feet per day of gas production represents a potential gross of $60,000.00 per day.
Jumeirah Resources PLC is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
Paragon Energy Corporation, a wholly owned subsidiary of Jumeirah Resources PLC, is an organization, focused on the acquisition, development, exploration and production (E&P) of low risk, high impact oil and gas properties across North America.
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