Exterra plans to drill these horizontal wells over the next 9-12 months and expects first 12 months net revenue after operations to be over $9m.
These areas have shown to typically come on line at 1-1.5mmcfd and will be producing an estimated 8mmcfd after all of the wells are online. Exterra believes that it can have all of these wells drilled and online within the next 6-9 months. Newtech Engineering will carry out all of the drilling and operations of these wells.
Todd Royal, president of Exterra, said: “we are very excited about these plans and the partnering with Newtech Engineering. This will be a very successful campaign we believe due to the lower drilling costs and today’s natural gas prices.
“We are also excited about having a company such as Newtech to oversee the entire drilling process to help assure Exterra of success. Again this reinforces our business strategy to develop our current assets while looking for undervalued acquisitions.”
