ERAO just secured 1.2 million in financing! En
Post# of 7848
Posted On: 05/13/2014 9:11:14 AM
ERAO just secured 1.2 million in financing!
Energy Revenue America Announces Investment for Drilling New Wells
Marketwired
https://finance.yahoo.com/news/energy-revenue...00084.html
DALLAS, TX--(Marketwired - May 13, 2014) - Energy Revenue America, Inc. (PINKSHEETS: ERAO), a firm focused on the acquisition, development and exploration of Coal Bed Methane (CBM) natural gas, is pleased to provide a funding update on the Company's 3,100 acres in Nowata County, Oklahoma.
Funding of $1.2 million has been secured and will be used to drill the first 10 wells of the 300 wells Energy Revenue America, Inc. (ERA) expects to drill in the future. Over the next 5 years Energy Revenue America plans to drill in excess of 300 wells in the Cherokee Basin. For every well completed, the reserve value for future gas from the wells becomes a value to ERA as future income. ERA estimates that on the 300 well program gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M. "This funding is a non-dilutive transaction and is excellent as we seek to continue to increase shareholder value," said Charles H. Havens, ERA's Chairman and Chief Operations Officer.
About The Cherokee Basin
The Cherokee Basin is located in the Mid-Continent region in southern Kansas, northern Oklahoma, and western Missouri. It is the eighth largest coal bed methane basin in the United States and covers approximately 26,500 square miles. Production of coal bed methane gas has been ongoing in the basin since the 1980s. The predominant production is natural gas produced from coals and shale. As commodity prices increased over the past few years, the attraction to these shallow long-lived unconventional resources have increased.
There are multiple producing coal zones in the Cherokee Basin including the Rowe, Riverton, Weir-Pitt, and Dawson. The carbonaceous shale zone known as the Mulky/Iron Post has been a favored recompletion target for many operators because its presence in most wells is shallower than the main objective pay zones, and will generate good cash flow with less expense. In addition, there are other productive shale zones, as well as conventional sandstone and limestone potential that can add gas production.
Producing coal bed methane zones get deeper moving from east to west across the Cherokee Basin. Portions of Nowata County, Oklahoma produce from depths that range from about 700 feet to about 1,300 feet in depth. Wells in this area usually cost less than $150,000 to drill and complete.
About Energy Revenue America, Inc.
Energy Revenue America, Inc. is focused on the acquisition, development and exploration of unconventional natural gas projects, primarily Coal Bed Methane (CBM) and seeks to acquire and develop properties with significant undeveloped potential and apply technical and operating expertise to maximize the value of these resources.
Energy Revenue America Announces Investment for Drilling New Wells
Marketwired
https://finance.yahoo.com/news/energy-revenue...00084.html
DALLAS, TX--(Marketwired - May 13, 2014) - Energy Revenue America, Inc. (PINKSHEETS: ERAO), a firm focused on the acquisition, development and exploration of Coal Bed Methane (CBM) natural gas, is pleased to provide a funding update on the Company's 3,100 acres in Nowata County, Oklahoma.
Funding of $1.2 million has been secured and will be used to drill the first 10 wells of the 300 wells Energy Revenue America, Inc. (ERA) expects to drill in the future. Over the next 5 years Energy Revenue America plans to drill in excess of 300 wells in the Cherokee Basin. For every well completed, the reserve value for future gas from the wells becomes a value to ERA as future income. ERA estimates that on the 300 well program gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M. "This funding is a non-dilutive transaction and is excellent as we seek to continue to increase shareholder value," said Charles H. Havens, ERA's Chairman and Chief Operations Officer.
About The Cherokee Basin
The Cherokee Basin is located in the Mid-Continent region in southern Kansas, northern Oklahoma, and western Missouri. It is the eighth largest coal bed methane basin in the United States and covers approximately 26,500 square miles. Production of coal bed methane gas has been ongoing in the basin since the 1980s. The predominant production is natural gas produced from coals and shale. As commodity prices increased over the past few years, the attraction to these shallow long-lived unconventional resources have increased.
There are multiple producing coal zones in the Cherokee Basin including the Rowe, Riverton, Weir-Pitt, and Dawson. The carbonaceous shale zone known as the Mulky/Iron Post has been a favored recompletion target for many operators because its presence in most wells is shallower than the main objective pay zones, and will generate good cash flow with less expense. In addition, there are other productive shale zones, as well as conventional sandstone and limestone potential that can add gas production.
Producing coal bed methane zones get deeper moving from east to west across the Cherokee Basin. Portions of Nowata County, Oklahoma produce from depths that range from about 700 feet to about 1,300 feet in depth. Wells in this area usually cost less than $150,000 to drill and complete.
About Energy Revenue America, Inc.
Energy Revenue America, Inc. is focused on the acquisition, development and exploration of unconventional natural gas projects, primarily Coal Bed Methane (CBM) and seeks to acquire and develop properties with significant undeveloped potential and apply technical and operating expertise to maximize the value of these resources.
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