Perth-based Redfork Energy Ltd has secured new gas leases over 13,500 additional gross acres, with a 100 per cent working interest, for between $500,000 and $800,000, the company announced today.
The full text of a company announcement is pasted below
Redfork Energy Limited ("Redfork" or "the Company") is pleased to announce that the Company's current leasing campaign is continuing to deliver strong results, with a total of approximately 13,500 additional gross acres to be added to Redfork's holdings in Oklahoma, USA. The Company now holds (leased or committed to lease) a total of approximately 18,000 gross acres in the highly prospective Cherokee Platform.
The majority of these leases are located within the first of three new areas being targeted in the Cherokee Platform. This is an unconventional gas project targeting shale and coal formations. This play is now developing rapidly with several oil and gas companies
aggressively seeking leases in the area. The play is also supported by significant recent drilling and production success in areas adjacent to Redfork's holdings.
The Company has secured these new leases on very favourable terms of 100% working interest (87.5% net revenue interest) at US$30 to US$50 per acre (three year terms with an option for a further two years).
Redfork is at the forefront of this play and the Company now expects to be in a position to calculate and report an initial gas-in-place reserve for this new project in the June quarter of 2007, as continued drilling and development occurs in the prospect area.
The leasing campaign continues with the goal of securing a large strategic land position on the current terms and in prospective areas that have demonstrated hydrocarbon production potential. The focus will be on lower risk unconventional CBM and shale plays that are located within the Cherokee Platform and Arkoma Basin.
