Area Drilling

Oct. 15, 2007


Israel’s petroleum commissioner issued Avenue Energy Inc., New York City, a license to Heletz-Kokhav field near Ashkelon.

The 60,000-acre license includes Heletz, Brur, and Kochav oil fields. Lapidoth Ltd. recently operated Heletz field under contract to the state, producing 70 b/d of oil from 6 wells.

Avenue Energy agreed to a 3-year work program of field studies, well workovers, 3D seismic, and drilling a new well. The license may be converted to a 30-year production lease if a substantial production increase occurs.

Heletz, developed on 80-acre spacing, has 53 idle wells, large infill drilling potential, and secondary and tertiary recovery potential.


Canary Resources Inc., Spring, Tex., started gas production from 10 coalbed methane wells in the eastern Forest City basin.

Canary operates all 10 wells and has 100% working interest in two and 50% interest in the other eight with K C Clean Energy LLC. Flow rates were not disclosed.

The wells are connected to Canary’s wholly owned interconnect into the 20-in. Southern Star Central Gas Pipeline.

The company’s focus area is Johnson and Miami counties, Kan., and Cass and Bates counties, Mo., in coals at 600-1,000 ft.

EnerJex Resources Inc., Overland Park, Kan., has identified more than 150 drilling locations on seven oil leases it has acquired in eastern Kansas for $2.7 million from an undisclosed seller.

The leases, in Johnson, Anderson, and Linn counties, are producing 50 b/d of oil equivalent. The purchase includes a 100% working interest and 1,500 gross acres of leaseholds.

The acquisition brings EnerJex operations to more than 200 b/d with 400 drillable locations in nine counties in eastern Kansas. Aggressive drilling is planned in 2008 once funding is secured.

Texas - West

Matador Resources Co., Dallas, and Meridian Resource Corp., Houston, plan to spud their first two wells in the fourth quarter of 2007 seeking gas in Barnett and Woodford shales in the Delaware basin.

The companies, which hold 85,000 acres in Hudspeth and Culberson counties, expect to encounter the formations at 5,500-8,500 ft. They identified the locations from 2D seismic.