Capital City Energy Group Continues Expansive Natural-gas Drilling Operation in the Appalachian Basin Clinton Sandstoneadmin
Capital City Energy Group Inc. has announced that its wholly owned subsidiary, Avanti Energy Partners LLC, will complete plans for a five-well natural gas drilling program in the fourth quarter and commence drilling in the first quarter of 2009.
The drilling package will target the Clinton Sandstone in the Appalachian Basin. The Clinton Sandstone is less than 4,000 feet deep and will be drilled on 20-acre spacing. The target area is surrounded by other wells currently in operation that have produced an average of approximately 35 million cubic feet of natural gas per well during their first year of production. Overall, the cumulative life of each well is expected to produce approximately 175 million cubic feet of natural gas.
Avanti is currently working on securing a total of 2,000 to 3,000 acres in the target area. Avanti officials anticipate drilling and operating a total of 250 wells in the target area, completing 25 wells per year. Based on today’s current natural gas prices and surrounding well-production data, 25 completed wells could generate gross revenues of $7.5 million in the first year.
“Avanti has a unique combination of knowledge and experience in drilling in the Appalachian Basin, making this an exciting opportunity for Capital City Energy Group,” said Timothy Crawford, CEO of Capital City. “This comprehensive drilling program is expected to create wells with great potential production over the life of the well.
“The economics of drilling wells in the Appalachian Basin combined with the high price of commodities make drilling in our own backyard very attractive.”
The Lower Silurian regional oil & gas located in the Appalachian Basin contains approximately 30 trillion cubic feet of recoverable gas resource. The Clinton and Medina sandstones are major contributors of the Lower Silurian. Since 1880, Clinton and Medina reservoirs have produced approximately 8.7 trillion cubic feet of natural gas and 400 million barrels of oil.
Based in Columbus, Ohio, Capital City is a diversified oil and natural gas company with three separate divisions. Capital City is evolving from being an innovative leader in the design, management and sponsorship of retail and institutional direct participation energy programs to become one of the few vertically integrated independent oil & natural gas companies. Their strategy is to continue to grow a portfolio of core areas which provide growth opportunities through grass-roots drilling, operating, service companies, acquisitions and fund management.
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Visit Capital City Energy Group at www.capcityenergy.com.