The well has been titled as the Adams Feed and is planned for instant drilling with preliminary results expected within one week from commencement. The operator has advised that drill equipment is now on its way to the prospect and drilling will commence shortly.
Galloway Energy has gained first right of refusal to take part in the gas project situated on 12,900 acres in the Barnett Shale area of West Texas. The area is a well documented and prolific region benefiting from the existence of companies such as Chesapeake Energy Corporation, Devon Energy Corporation, EOG Resources, Inc, XTO Energy Inc., and Quicksilver Exploration. The Barnett shale is one of the prime sources of natural gas in the US with proven reserves of 2.5 trillion cubic feet (Tcf) which many companies consider is far short of a reserve potential that may prove to be considerably closer to 30Tcf or more. The property in question has more than 115 working wells at present in production, as a result of which the company’s contribution will result in immediate cash flow for the company.
Company president and chief executive officer Shane Lowry comments, We are very pleased by the news that the operators of this project believe firmly in growth. Bringing an additional well into production certainly enhances and strengthens our rationale for participation in this growing project. However, we are still looking at further strategic acquisitions with an eye to increased expansion and portfolio diversification as we feel this is the best way to provide tangible value to our stakeholders and investors within realistic timelines.
