The well has drilled to a total depth of 8,440ft and encountered 2,500ft of gross gas column, and reservoirs in the Lower Mesa Verde formation as per expectations and similar to the results achieved by Williams Energy and Bill Barrett companies in nearby leaseholds.
The companies are expecting to complete the well in the final quarter of 2012 following which Brownstone will secure 60 billion cubic feet equivalent which includes 3.6MM barrels of liquids of proven and probable undeveloped reserves attributed to the Lower Mesa Verde section of this Kokopelli lease.
Gustavson and Associates carried out a reserves evaluation report for Brownstone’s leases at the Kokopelli field and reported the before tax discounted net present value 10% of proved undeveloped reserves is valued at $34.6m and proven plus probable undeveloped reserves are valued at $74.5m.
The project is owned 72% by Dejour Energy and 28% by Brownstone Energy.
