Nextraction/Vantage Energy Announces Completion Program for Pinedale, Wyoming WellMarch 15, 2010
Vancouver, BC - Following on the successful drilling and discovery of numerous sand packages in the recently drilled Noble 6-24 well in Pinedale, WY, Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction", and its operating partner, Vantage Energy have evaluated the well logs and proceeded to retain a third party completion/frac design engineer, knowledgeable in the preferred multi-stage fracturing and completion programs common to this Pinedale Anticline area. In addition a local oilfield service company, with experience in fracing nearby Pinedale wells, has also submitted a proposed completion program to Nextraction's operator (Vantage Energy). The two proposed frac designs are currently being compared and evaluated; however both studies were similar with the number of frac stages varying from 12-17 stages from a 5,400 foot (1687.5 meter) thick interval ranging from approximately 9,380 feet (2,931 meters) to 14,750 feet (4,610 meters). Geological logs, gas shows and other technical details have initially confirmed the economic potential of the Noble 6-24 well. An independent reserve report confirming reserves should be available at the end of the completion process.
The Noble 6-24 well was drilled and logged in mid- Feb 2010. Nextraction's board member and VP of Operations, Dr. Paul B. Trost, a geochemist, was present and upon initial evaluation of the drill logs elected to set production casing as the initial step of the completion process.
Nextraction/Vantage is also finalizing gas sales contracts and pipeline right-of-way agreements with Jonah Gas Gathering Company (Jonah System) and plans to lay an 800 meter pipeline to existing market infrastructure in May 2010. The well will then be completed by fracing into the pipeline for sales of initial production flow rates. Thus gas sales are anticipated to be initiated in the mid to late summer of 2010-in time for the increasing demand for natural gas in the upcoming fall and winter months.
The Company is currently in the bid process to complete the well and expects the final decision will be rendered by mid-April. The Company anticipates further investment of an additional $2.5-$3 million (US) to complete and place the well into production. Mark S. Dolar, President of Nextraction commented, "The proposed fracs are typical of the well designs for the Pinedale area and this is a positive confirmation for this well and also confirms our growth potential for further wells on our lease area. With success from our first well at Pinedale, the Company will be in position to consider steps to potentially accelerate our future drilling plans."
In addition to the completion planning on its Pinedale well, Nextraction is currently drilling a Chattanooga shale gas well on the Tennessee/Kentucky.
About Jonah Gas Gathering Company (Jonah System)
The Jonah System is comprised of approximately 300 miles of pipelines ranging in size from four to 20 inches in diameter, five compressor stations totaling 33,000 horsepower and related metering facilities. The system, located in the Green River Basin in southwestern Wyoming, gathers and transports natural gas from one of the most prolific and active basins in the United States. Gas transported on the Jonah System is processed by others and delivered to several interstate pipeline systems located in the area that provide access to a number of West Coast, Rocky Mountain and Midwest markets.
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company is headquartered in Vancouver, BC, Canada, and is currently developing a tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, and a large Chattanooga shale gas resource play in Eastern Kentucky and Tennessee.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
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For further information on behalf of Nextraction Energy Corp, please contact:
Karmen Jade Birss
Manager, Corporate Development
Nextraction Energy Corp.
Toll Free: 1-888-630-0370