Marion Energy ---Central Utah Sleeping Giant
Marion Energy Limited is a publicly listed company on the Australian Stock Exchange (ASX Codes: MAE, MAEO).
Marion Energy’s Clear Creek Field is approximately 7 miles from Wolverine’s Milburn Drilling site.
Marion Energy Website: www.marionenergy.com.au
Market Price: tinyurl.com
Overview of Marion Energy
Marion Energy Limited is aggressively pursuing a low risk strategy to increase reserves and production of non-conventional natural gas in the onshore USA. The company plans to develop low cost reserves by exploiting mature reserves and finding new reserves in existing producing areas, adjacent to existing infrastructure.
Favorable industry fundamentals, including record high natural gas prices, advances in drilling, completion and fracture stimulation techniques, coupled with ready access to infrastructure have allowed the company to pursue several attractive investment opportunities. The company currently has in its portfolio an inventory of two to three years of drilling opportunities, which if successful could create a substantial reserve base.
Recent Marion Energy Activity
This has been a period of increasing activity in Utah and Oklahoma in terms of drilling, completions, well workovers, the acquisition of production infrastructure and pipeline tie-ins into production facilities, together with the acquisition of additional acreage.
Positive drilling results were experienced in both Utah Projects and in Oklahoma while activity in East Texas remained dormant due to the previously advised limited availability of equipment and oilfield services.
The Company now has five wells in development in Clear Creek, eight wells in development in Helper and five wells in development at Jester-Bloomington.
Importantly, as a result of this increased activity, the Company is now in a position that will see its production increase significantly in the near future with corresponding increases in cash flow.
CLEAR CREEK PROJECT
The Clear Creek Unit is located approximately 12 miles west of the Drunkards Wash field in the Uinta Basin in central Utah. The Unit was drilled in the 1950's and mostly produced through the early 1970's with a field spacing of 640 acres. The Unit has produced 130 Bcf of natural gas from conventional reservoirs.
In the company's opinion, the spacing was not sufficiently tight to drain all the gas in place. Each individual well probably only drained 40 to 80 acres, leaving a significant amount of gas in the reservoirs. In addition to the conventional reserves that are remaining in the Ferron sandstone, significant reserves are anticipated to be recovered from several coal beds that exist under the Unit. Independent engineers have estimated unrisked, potential reserves in the Ferron sands and the Ferron, Blackhawk and Emory coals under the Unit to approach 1.5 Tcf of natural gas. This is the most significant property in the company's portfolio.
Stock Chart---- tinyurl.com
Summary
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Current PriceA$.80
Market Cap A$238million or $ 194 million U.S.
Shares outstanding 250.3 million
Shares fully diluted 298.2 million
Price range 12 monthsA$0.34 -A$0.99
Average daily volume approx. 0.5 million shares
20,000,000 June 30, 2009 $ .25 AUS $ 5,000,000 AUS*
20,000,000 June 30, 2009 $ .30 AUS $ 6,000,000 AUS*
1,500,000 May 30, 2011 $ 1.00 AUS $ 1,500,000 AUS
5,000,000 August 28, 2011 $ .40AUS $ 2,000,000 AUS
1,000,000 November 14, 2011 $ .70 AUS $ 700,000 AUS
Total Warrants 42,196,665
Fully Diluted 298,155,868
Market Cap Fully Diluted $ 238 Million AUS or approximately $ 194 Million U.S.
Looking at just Clear Creek if have 1 to 1.5 Trillion Cubic Feet of Natural Gas this is equal to approximately $ 1.0 Billion U.S. to $ 2.25 Billion U.S. Market Cap.
* Owned by management with expiration being evergreen
Marion Energy Current Drilling Summary/Status
Well Name Field Status
Ridge Runner 2-19 Clear Creek Commencing completion/testing
Ridge Runner 11-17 Clear Creek Tied into infrastructure
Ridge Runner 11-20 Clear Creek Tied into infrastructure
Ridge Runner 13-17 Clear Creek Tied into infrastructure
ASD 3-17 Clear Creek Drilling in progress
Kenilworth Rail Road #1 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Kenilworth Rail Road #2 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Ball Park #1 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Cordingly Canyon 10-1 Helper Awaiting completion
Cordingly Canyon 11-1 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Cordingly Canyon 15-1 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Cordingly Canyon 15-2 Helper Tied into infrastructure;Awaiting gel/ ferrite treatment
Cordingly Canyon 15-3 Helper Logged and cased
Cordingly Canyon 15-5 Helper Testing
McAlexander J-B Completing pipeline
Since the last Operations/Project Update of 18 January 2007, the Cordingly Canyon 15-5 well has been tied into production; the Cordingly Canyon 15-3 well has been drilled with good gas shows and is awaiting completion/testing; the Ridge Runner 11-20 well has been tied into production; andcompletion/testing operations of the Ridge Runner 2-19 well has commenced.
Following the clean-up of coal fines, and dewatering, the Helper wells have exhibited evidence that production is being restricted by unbroken gel from the original fracture stimulation process and precipitation of ferrites formed by a chemical reaction between the acid used in fracturing and certain formation material. This occurrence is not unusual and has been seen in many other producing CBM fields in North America and is able to be successfully treated with standard chemicals. Analysis of samples from the field has been completed and design of the appropriate injection program finalized. This is a standard treatment used successfully elsewhere. Treatment of the first well, the Cordingly Canyon 15-2 has commenced.
Further announcements will be made by the Company as the testing and productions operations continue.
Mr Jeff Clarke - Managing Director & CEO of Public Marion Energy Limited
Mr Clarke, born and educated in the United Kingdom, has over 35 years experience worldwide in Oil and Gas Exploration and Production, the majority of which has been in the United States and Canada.
Mr Clarke, a petroleum geophysicist, has held the position of Chief Executive of several Exploration companies and was for ten years Chief Executive of a NASDAQ listed company. As Chief Executive Mr Clarke took this company public and subsequently directed the raising of both public equity and public debt capital in excess of US$350 million. During this tenure, Mr Clarke oversaw a US$60 million merger with a private company and the acquisition of over US$300 million of oil and gas properties.
Mr Clarke graduated from the University of Wales in 1966 with an Honours Degree in Physics. He is a U.S citizen.
Listen to Jeff Clarke summary of Marion February 2007 after Clear Creek Successful Test of Ridge Runner 11-17 Well in Clear creek, Utah tested 5 million cubic feet day of natural gas:
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