BECO News out today. Looks from the market reaction it is a "Show me the money" market. Market evidently wants the first drill hole to hit a gusher, have contract in hand for the gas and/or oil found, and first payment deposited in the bank by BECO.
Boyd Energy Corporation Commences Drilling Kentucky's Prospect 19
May 6, 1999 10:17 AM
ARLINGTON, Texas--(BUSINESS WIRE)--May 6, 1999--Boyd Energy Corporation (the "Company") BECO has commenced drilling the Jones No. 1 natural gas well in Caldwell County, Ky.
The well is located in the Company's Prospect 19, which totals more than 4,200 developmental acres. The entire Prospect 19 will accommodate a total of 110 wells and is expected to take approximately 2 years for development.
The Jones No. 1 well will be drilled to a total depth of 4,000 feet encountering the Hunton Group (Silurian) as the primary exploration target. The Hunton Group lies between two proven formations in the Illinois Basin, the New Albany Black Shale and the Maquoketa Shale. The Company will drill to the bottom of the Maquoketa shale and search for Silurian Reef deposits. The primary reasoning behind this area of choice is due to its potential for the production of natural gas and crude oil.
According to GRI methods the natural gas reserves in the Devonian Black Shale are estimated to be up to 1 BCF (billion cubic feet) with per day production estimated at 500,000 cubic feet per well. While the Company makes no warranties or representations that these daily objectives will be obtained, it is possible that they will be surpassed. Should the Jones No. 1 produce natural gas at an average rate of 1,000,000 cubic feet per day and sell at a rate of $2.50 per thousand cubic foot, the revenues per well should equal $2.5 million.
Boyd Energy Corporation is an independent oil and gas exploration and development company located at 1000 Ballpark Way, Suite 210, Arlington, TX 76011, Tel: 817/469-8118, Fax: 817/460-5215 or visit our Web site at www.boydenergy.com.
Forward looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements involve risks and uncertainty. Including without limitation to the costs of exploring for the uncertainty of developing new oil and gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling and producing of oil and gas reserves, as well as general market conditions, competition and pricing. |
