FNRC
1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production company headquartered in Denver, Colorado whose activity to date has been centered on development of the Clabaugh Ranch Field, a project developing and producing coal bed methane reserves (CBM) located in the Powder River Basin of Wyoming.
The targeted coal seams in the Powder River Basin are part of the Tongue River Member of the Fort Union formation and have been extensively mapped as natural resource developments and exploration have occurred throughout the region. Industry data from many wellbores drilled by others, allow the Company to estimate the extent, thickness, gas saturation, formation pressure and relative permeability of the coal seams. This reduces (but does not entirely eliminate) the risk of drilling unproductive wells. The Company has experienced a 100% success rate at Clabaugh Ranch where the 42 drilled wells have encountered developed coal seams in the Werner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall formations. Well log analysis of the drilled wells demonstrates gross pay zones of approximately 150-200 feet, the most significant of these being the Werner, Wyodak/Andersen, and Gates coals. Clabaugh Ranch is about 20% developed; currently the 42 drilled wells are commingling gas produced from three coals - the upper and lower Smith, and the Wyodak/Anderson. In total the Company has identified 515 separate coals seams for development of which only 126 (42 wells X 3 seams) have been completed. There are 8 permitted locations for future development and acreage for 28 additional locations which will be permitted in the future.
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