KMV plans three more gas wells in Oklahoma

Nov. 10, 2006
Mammoth Energy Group Inc. subsidiary KMV Consulting, Denver, currently drilling five wells in its shallow gas project in Rogers County, Okla., has made arrangements to drill three more wells there.

By OGJ editors
HOUSTON, Nov. 10 -- Mammoth Energy Group Inc. subsidiary KMV Consulting, Denver, currently drilling five wells in its shallow gas project in Rogers County, Okla., has made arrangements to drill three more wells there.

The wells will be drilled in the next few months on acreage KMV leased in May when it took over and began expanding the gas project. KMV recently secured an additional 1,476 acres, doubling the acreage under lease to 2,551 net acres.

The three wells planned would put KMV's total well count at 18 producing wells, with five more scheduled by yearend. The area has a 100% success rate reported on over 300 wells, due largely to a blanket Excello shale-coalbed methane seam that covers the area.

On the recently acquired acreage, Mammoth's Chief Executive Christopher Miller said there are about 8 oil wells that can be recompleted to produce gas and brought on line for about half the cost to drill and complete a well.

"Of the next 15 wells we plan to drill, about half of them fall into this category. Therefore, we hope to have about 30 wells producing by the end of the first quarter 2007," Miller said.

KMV retains a 49.5% net revenue interest in the 18 gas wells, having sold 33% of its working interest to Allied Energy for $1.5 million.