The New Albany shale in the Illinois Basin just gained a new producing field. NGAS Resources announced that it is producing gas from its Haley’s Mills Field in Christian County, Kentucky. The company has completed 10 miles of field gathering, pipeline and gas-processing facilities and now is flowing gas into the Texas Gas interstate pipeline. NGAS has drilled 37 wells in the field to date, and 26 are producing. It has been developing the project with vertical wells, but recently drilled its first horizontal in the field. That well is completed and will be hooked up to sales within a month. The Lexington-based operator has interests in 26,000 gross acres at Haley’s Mill, where the New Albany is about 180 feet thick and occurs at depths of 2,500 feet. Vertical per-well costs are $150,000 to $175,000 and expected recoveries are 135- to 200 million cubic feet. NGAS currently has two rigs working at Haley’s Mill. --by Peggy Williams, Senior Exploration Editor, Oil and Gas Investor Contact me at