Next Generation Energy Corp (OTCQB : NGMC) today announced it has entered into an agreement to purchase 7,715 acres of natural gas and oil rights in the prolific Devonian Shale region of South Eastern Kentucky.
The property consists of 39 tracks located in the Knox County area of southeast Kentucky known for large reserves of natural gas and oil. The appraised value of these commodities on this property is estimated at $55 million or more. Darryl Reed, NGMC CEO, stated that “this acquisition is a home run for NGMC as the property can support up to 80 wells and can generate $55 million in natural gas and oil revenues at today’s energy prices. Any increase in energy prices will be pure upside for the Company.”
Next Generation Energy Corp. has been focused on this geographic area because Kentucky offers many advantages for development. The area has significant recoverable natural gas and oil reserves in place and has been generally ignored by larger energy companies due to the small output from individual wells, typically between 20 and 80 barrels per day of oil and 10 – 200 million cubic feet of natural gas, as compared to larger well production in Alaska, West Texas, Louisiana and the Gulf of Mexico.
“Another major advantage for developing these tracts is that recovery is achieved at much shallower depths (between 2000 and 2500 feet), thereby significantly reducing drilling costs,” said Mr. Reed. “Natural gas and oil wells in Kentucky are legendary for producing for very long periods of time and in some cases wells have produced for 20 to 100 years. Since the development of new drilling technologies such as horizontal drilling, hydraulic fracturing, and others, wells can be much more productive then earlier convention drilling methods.”
“The State of Kentucky is very energy development friendly and offers a variety of rich geological resources through the University of Kentucky and the Kentucky Geological Survey,” Mr. Reed said.
“This important addition to our energy producing property portfolio is the largest to date. Next Generation Energy Corp. is in the process of selecting a highly qualified and reputable operator to begin developing these newly acquired tracts. On another level, we are proud to contribute to increased supplies of domestically recovered energy, reducing our dependence on foreign sources,” Mr. Reed concluded.
NGMC is focused on aggressively growing its existing portfolio of developed, valuable natural resource royalty producing properties, including natural gas, oil and coal, with a primary focus on natural gas. The Company’s strategy is to acquire properties that are undervalued or under-utilized and are currently producing energy commodities. Once acquired, NGMC outsources all expansion exploration, upgrades, drilling and mining operations through leases with well known, environmentally-conscious operators. Royalty cash produced from the properties is reinvested back into NGMC to acquire additional properties in order to maximize shareholder returns.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company’s growth and profitability, growth strategy, liquidity and access to public markets, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.
|E & E Communications|
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