Closed on the purchase of the Fredonia Gas Prospect in Wilson County, Kan.
A subsidiary of New Western Energy Corp. (OTCBB: NWTR) has closed on the purchase of the “Fredonia Gas Prospect” from an unidentified seller for an undisclosed amount.
The prospect consists of three producing gas leases: The Farwell, Eagle and Puckett leases, which contain about 1,040 contiguous acres and nine producing natural gas wells in the Cherokee Basin in Wilson County, Kansas.
The three-lease property is currently producing 6 billion cubic feet (Bcf) per month from nine producing gas wells. Produced water is disposed of into a centrally-located arbuckle disposal well with plenty of capacity for future expansion.
The three-lease property is located in the central portion of the Cherokee Basin Structural Province. This maturely explored basin is best known for its gas production from shallow Pennsylvanian-aged sandstone reservoirs. In the immediate prospect area, gas is produced from several pay zones of Mississippian- and Pennsylvanian-age at depths ranging from 600 to 1,400 feet. Both stratigraphic traps in sandstone reservoirs and structural traps in folded carbonate and clastic rocks are common producers in this area.
The three-lease property covers approximately 1,040 acres located two miles east of the town of Fredonia, Kansas. The targeted gas formations for the property are located within the Fredonia and Neodesha Gas Fields.
The topography of the area consists mostly of wooded areas with a few grassland pastures, sloping downward from the Fredonia plateau to river bottoms, with the Fall River to the east and the Verdigris River to the west. The prospect leases lie adjacent to Kansas State Highway 400 and are easily accessible for gas drilling, production and pipeline operations.
"We are excited to continue with the execution of our strategic plan of extending our development and production of natural gas from properties with strong historical production and great future potential," said Javan Khazali, president and chief executive of New Western Energy Corp."
Through our further development of the behind pipe coal gas reserves contained in the existing nine producing gas wells, as well as through the drilling and development of the nine proven undrilled offset locations available, we anticipate significant additional natural gas production from the Fredonia Gas Prospect in the coming year," he said.
New Western Energy Corp. is an independent oil and gas company based in Irvine, Calif. with assets primarily in North America.