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Motivated by the rising demand for energy and permanent climb in natural gas prices, innovative oil and gas companies are using advanced exploration, drilling and completion technology to unlock the massive potential of these unconventional resources.
Kentucky USA Energy Corp. is a growing independent energy company with the experience, technological expertise and drive to develop the plentiful gas resources of the Illinois Basin’s New Albany Shale. The company has acquired a leasehold in western Kentucky containing proved undeveloped reserves with a gross future cash flow of $120,000,000 for the first 15 years of forecasted recoverable life at $6.00 per MCF.
Kentucky USA Energy has negotiated in principle an interest in the Western Kentucky Prospect that covers approximately 2200 acres in the Illinois Basin and targets an estimated 20 billion cubic feet (BCF) of natural gas within the prolific New Albany Shale.
STRATEGIC ADVANTAGES
- Kentucky USA has purchased a significant natural gas target with high probability of success
- Lease is directly adjacent to producing wells in which companies are reporting greater than 95% success rate
- Leading edge development and production capabilities including unconventional gas drilling and completion expertise
- Advantageous acquisition and production economics
- Potential estimated gross undiscounted value of gas reserves is $3.9 million per well based on 650 MMCF per well, 50 wells planned at a projected cost of $16,250,000
- 15-year projection for gross future cash flow is $120,000,000 at $6 per MCF
- Shallow wells – target depths of between 1800-2500
- Affordable drill and completion costs with efficiencies available for multiple wells
- 3-D seismic, geology and data from actual producing wells to identify additional drilling locations on the acreage
- Existing production adjacent to lease
- Available acreage for years of low risk infill developmental drilling
- Capable of bringing 20 wells online within 12-18 months
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