CLAY COUNTY, Ky. (June 11, 2013) – US Natural Gas Corp., an energy exploration company with operations in the Appalachian Basin, has entered into terms to acquire 17 producing oil and natural gas wells in Eastern Kentucky.
Financial details of the acquisition were not disclosed.
The 17 wells are located in Clay County, Ky., on a 400-acre lease. They are currently shut-in by the selling operator, but have a history of production as recent as 2011. Previous production records show that the field of 17 wells produced on average 20 to 25 barrels of oil per day.
The company plans to purchase new pump jacks and above ground completion components for all wells. The installed rods and tubing are in adequate condition to allow for the wells to be placed into immediate production once the above ground fixtures are installed. The company anticipates that it will take 45-60 days to complete this work and have the wells on pump, with revenue being realized in the third quarter.
The company will have an opportunity to deliver the natural gas production from the field to one of two intrastate transmission pipelines. Daily pressure volumes will be monitored to determine the most feasible route for delivery.
“The addition of these 17 wells will immediately impact our revenue with little capital expenditure,” said Wayne Anderson, president of US Natural Gas Corp. “We are continuing with our goal of adding proven and producing crude and natural gas properties to avoid the uncertainty of wildcat drilling.”
US Natural Gas Corp. is a Florida-based independent energy company that is principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company’s current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia, with core assets consisting of 17,000 acres of mineral rights leases and interest in approximately 150 oil and gas wells.