Thunderbird Joins Ongoing 10 Well Drilling Program in Kansas; First 2 Wells Are Successful and Option Acquired to Drill Multiple Oil and Gas Plays
Thunderbird Energy Corp. (TSX VENTURE:TBD – News; “Thunderbird”) announced today it has entered into an agreement with EHM Energy Partners Inc. (“EHM”) to join their ongoing 10 well drilling program in Rush County, Kansas. EHM has just completed drilling the first 2 wells, and is in the process of equipping them for commercial oil production. A third well will spud within the next few days.
The first 3 wells were drilled at no up front cost to Thunderbird, which will earn a 50% working interest in all of the initial 6 wells by funding drilling and completion costs for wells 4, 5 and 6. Thunderbird will commence drilling these 3 wells in late November. Upon completion of the 6 initial wells, Thunderbird will have the option to earn a 100% working interest in 4 additional wells by paying drilling and completion costs.
The initial EHM/Thunderbird prospect is called the Zimmer-Tammen Project and is located on the Central Kansas Uplift which has a long history of oil and gas production from multiple productive formations, most notably the Arbuckle Group. A typical, successful Arbuckle well in the area flows 50 to 100 barrels of 45+ API sweet crude oil, and produces over 60,000 barrels over a 10+ year lifespan. Drill stem tests and bottom hole pressure tests on the initial 2 wells drilled by EHM indicate they are both commercial Arbuckle wells.
The Zimmer-Tammen wells are being drilled to a target depth of approximately 4,000 feet at a turnkey drilling and completion cost of US$400,000 per well. Thunderbird is currently evaluating a variety of financing alternatives to provide the funding required.
Upon completion of the initial 10 well program, Thunderbird will have rolling options to drill additional wells on the Zimmer-Tammen prospect, as well as on at least two other prospects controlled by EHM in central Kansas. These prospects will be described in more detail in a subsequent news release.
EHM will retain a 10% net profits interest in the initial drilling program which will progressively increase to 40% of net profits and a 5% overriding royalty once Thunderbird has recovered 250% of its drilling costs.
“The opportunity to step into a drilling program which has already achieved a 100% success rate and near term cash flow on its first two wells is a rare opportunity”, stated Cameron White, President of Thunderbird. “Just as importantly, our relationship with the EHM group provides us with access to their decades of experience in Kansas oil and gas production and a wide variety of future opportunities.”
Thunderbird Energy is a Canadian based oil and gas company that, in addition to the Kansas project, owns a 50% interest in the Gordon Creek producing natural gas field in the State of Utah, USA. Thunderbird’s other holdings include a New Brunswick oil and gas exploration project adjacent to the Stoney Creek field.
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Cam White Thunderbird Energy Corp. President and CEO (604) 707-0373
847 Hamilton Street Thunderbird Energy Corp. Vancouver, BC V6B 2R7 (604) 707-0378 (FAX)
Richard Cohen Clark Avenue Company Inc. President (905) 882-4422
103 Clark Avenue East Clark Avenue Company Inc. Toronto, Ontario L3T 1T1 (905) 882-4435 (FAX)
Source: Thunderbird Energy Corp.