Kansas

DK True Energy Development Ltd. signed a letter agreement to earn up to an 85% working interest in southeast Kansas coalbed methane properties held by JayHawk Energy Inc., Post Falls, Idaho.

Aug 12th, 2009

By OGJ editors
HOUSTON, Aug. 12
– DK True Energy Development Ltd. signed a letter agreement to earn up to an 85% working interest in southeast Kansas coalbed methane properties held by JayHawk Energy Inc., Post Falls, Idaho.

DK True Energy is to pay JayHawk $500,000 and spend at least $1.3 million in 3 years using a patented short radius stimulation hydrajet drilling technology that involves coiled tubing. Existing wells can be reentered and laterals of 1,000 ft or more can be drilled into various coal seams.

JayHawk, whose properties are in the Cherokee basin in Bourbon and Crawford counties, will continue to own 100% of its 18-mile gas pipeline.

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