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MARION ENERGY LIMITED - ASX: MAE
The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.
Description
Marion Energy Limited is following a low risk strategy of pursuing gas reserves and associated production in the Rocky Mountains and Mid-Continent regions. The Company’s activities are generally within the geographic confines of or adjacent to known production and within easy access of existing pipeline infrastructure. We have been able to accumulate an enviable lease position where the company is undertaking a highly successful development drilling program.
Favorable long-term industry fundamentals and advances in drilling, completion, and fracture stimulation techniques have allowed the Company to pursue several attractive projects in Utah and Oklahoma. Based on a recent independent report by MHA Petroleum Consultants, Inc., Marion has 243 BCF in proven, probable and possible reserves. The Company currently has a substantial inventory of drilling opportunities - over 240 driling locations identified in the Clear Creek and Helper fields and over 300 additional prospective locations - which gives our investors exposure to significant reserve upside. Complementing this Marion controls field operations associated with large acreage and working interest positions.
Clear Creek - Utah (100%)
Seven newly drilled wells are tied into production facilities. Production rates have not yet stabilized. The Ridge Runner 8-19 is awaiting fracture stimulation. When all eight wells are on production, Marion will continue with its development drilling program. The typical drilling and completion cost of future wells should be in the US$1.3 million to US$1.7 million range. These eight wells are the first in a series of wells that will take the original 1000 acre spacing down to 160 acres per well.
Helper - Utah (100%)
Current development drilling inside the Helper Field area by Marion has most recently defined through logging and production tests significant over pressured gas reserves in the Cedar Mountain and Morrison formations. These formerly unexploited reservoirs represent a significant reserve growth potential for the company. Exploration for these objectives is currently underway over an area covering 400 square miles. Within this area Marion operates and or controls a total of 28,938 gross acres. Average reserves per well are projected to be in excess of 5 BCF. Initial production flow rates from the KRR #1A well have exceeded 1.5 MCFD.
Roans Cliffs - Utah (100%)
A buyout in 2006 from Robert Bayless LLC, an industry competitor, has positioned Marion for exploration and development, north of the Helper project, in the Roan Cliffs and Emma Park-Whitmore Park Valley. The Roan Cliffs acreage, totaling 19,718 acres, is positioned in-trend to the West Tavaputs Plateau development drilling program currently underway by the Bill Barrett Corporation (BBC).
Jester-Bloomington Project
The Jester-Bloomington Field is located in Greer County, Oklahoma and is part of the eastern most extension of the Panhandle East Field. Discovery of the field occurred in June of 1959 with production from the Brown Dolomite and Granite Wash. Two wells together made, prior to the field being shut-in, a total recorded volume of 431 million cubic feet from depths no greater than 1,400 feet. Combined Jester-Bloomington has a productive footprint of 14,200 acres and a structural footprint of 24,000 acres. To date the cumulative volume of gas produced from the field stands at 7.9 Bcf with the field all but being shut-in since 1998. Original gas in-place for the two reservoirs averages 131 mcf per Acre/Foot (“AC/FT”). Production and reservoir analysis suggest an optimum spacing for both reservoirs of 40 acres/well. Taking into consideration that there are two reservoirs and a total of 33 wells have been drilled and completed to date, there remains room for an additional 268 new drill locations. Marion has leased to date a total of 7,904.14 net acres (11,169 gross), drilled and completed one deviated well, purchased 9 producing and/or shut-in wells, and has acquired through a buyout portions of the gathering system and access to a regional sale point. Rates of individual wells have been tested at sustained rates of 280-750 mcf/day.
Willow Project
Situated north of the Jester-Bloomington Project, Marion’s recent acquisition of the Willow, South Erick, North Bloomington, and Moravia Fields adds a total of 18,354.32 net acres (23,802.99 gross) to the Company’s Wichita Uplift development program. These fields have produced a combined total from the Granite Wash and Brown Dolomite reservoirs of 5.7 Bcf from 48 wells. Similar to the Jester-Bloomington Field original gas in-place for the two reservoirs averages 131 mcf per AC/FT and the optimized spacing for both reservoirs is 40 acres/wells. Using a drainage pattern of 40 acres/well leaves behind an undrained acreage position capable of having an additional 327 new drill locations.
Mine For
oil, gas
Location of operation(s)
USA
Address
Suite 3, Pacific Tower , 737 Burwood Road
HAWTHORN, VIC, AUSTRALIA
Phone
03 8862 6466
Website
http://www.marionenergy.com.au
Last Updated
09/03/2010
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.