By OGJ editors
HOUSTON, Nov. 23 -- High prices are enabling US gas producers to extract natural gas from marginal properties.
Energas Resources Inc., Oklahoma City independent, hopes to start gas production in the first quarter of 2006 from 23 shut-in wells drilled 20-40 years ago in the Appalachian foothills of eastern Kentucky. The wells were never placed on production.
In its Parkway Project, Energas will lay 3.7 miles of 6 in. steel pipe to connect the unnamed accumulation to a transmission line operating at just under 200 psi.
Energas will string a 4-in. gathering line to each well and hopes to have all 23 hooked up by mid-2006.
The 140 psi rating on plastic conduit used on another company-operated project in Pulaski County acquired in 2003 imposed flow limitations that persuaded Energas to use steel at Parkway.
The 23 wells are believed to be contributing gas from the Ordovician and Mississippian Knox, shale, Waverly, and Big Lime formations at 2,000-3,600 ft. Flow rates could be as little as 100 Mcfd/well, Energas said.
The first two wells to be activated have tested gas and sweet, 40° gravity oil on pump and are to be dually completed.
Though it has no assurance of what the old wells will deliver, the company said current gas prices support laying the pipeline and taking the risk. No new wells have been drilled, but Energas holds enough acreage to drill scores of wells if economics allow.