By OGJ editors
HOUSTON, May 19 -- PostRock Energy Corp., Oklahoma City, drilled and connected 39 development wells in the Cherokee basin in the quarter ended Mar. 31, completed nine wells drilled in prior periods, recompleted or connected 20 wells, and returned 30 wells to production.
Production in the basin fell 1.5% to 51.9 MMcfd of gas equivalent, mainly due to adverse February weather.
New development wells cost an average $142,000, 9% lower than the fiscal 2010 average. The average new development well is expected to provide a 24% rate of return and is producing at above expected rates. It is too early to tell if production from the new wells will continue to rise and reach the anticipated peak. However, if development continues to meet or exceed expectations, production will grow year on year.
Pipeline revenue rose 18.6% in the quarter. The company said potential pipeline exposure to the emerging Mississippian play in north-central Oklahoma will continue to attract more customers and new transportation contracts.
PostRock owns and operates more than 3,000 wells and nearly 2,200 miles of gas gathering lines in Kansas and Oklahoma and a 1,120-mile interstate pipeline that transports gas from northern Oklahoma and western Kansas to Wichita and Kansas City.
Dreamstime | © Charles Montgomery.
Photo from SABIC Limburg BV.
