Kingslake Energy Projects First Producing Gas Well to Generate Minimum of $50,000 Per Month
Eight Additional Wells are Currently in Final Stages of Completion
Kingslake Energy Inc. (Pink Sheets: KGLJ) announced today that it has drilled and completed its first producing natural gas well in the proven Devonian Shale formation.
Kingslake Energy recently acquired 20,000 acres of strategic lease hold properties in the prolific Devonian Shale of the Appalachian Basin. The highly active formation is located in the prolific Appalachian Basin, an area encompassing Kentucky, Tennessee, West Virginia, and Virginia, where significant natural gas reserves have been confirmed on the property.
Kingslake is taking advantage of recent advances in drilling and completion techniques, which has made the Devonian shale gas a viable, profitable, and critical part of energy production in the United States.
Kingslake Energy plans to drill more than 200 wells on its more than 20,000 acres within the Devonian Shale. As the Company completes its drilling objectives, each well is expected to produce at the following rates:
A minimum of 50 mcf of gas per day
An initial net price of 80% of the NYMEX monthly Spot price
Daily gross (August/Sept. price) would equal $5.50 X 300 mcf totaling $1,650 per well, or $50,200 per well, per month
James R. Pagnum, President of Kingslake Energy, Inc. stated: “The Devonian Shale acquisition and corresponding discoveries confirms the Company’s position as a growing independent presence in the multi-billion dollar US natural gas exploration and production market.
“This recent purchase will significantly increases the Company’s revenues and net asset value for our shareholders. Further, Three additional seismic lines have confirmed the presence of still deeper natural gas zones within the lease block for future testing.
“With all of our recent developments we are very pleased to report the completion of our first producing well at Devonian Shale. We are confident that our other wells currently in production will produce at similar rates. With substantial geological evidence supporting our projections, we predict a drilling success rate of over 90%. This region of the prolific Devonian Shale is one of the most promising natural gas concessions in the nation.”
ABOUT KINGSLAKE ENERGY INC.
Kingslake Energy, Inc. is becoming a commanding independent presence in the multi-million dollar US natural gas exploration and production market. Currently, the Company explores and drills in the prolific Appalachian Basin, an area encompassing Kentucky, Tennessee, West Virginia, and Virginia.
This document may contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates," and variations of these words as well as similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Kingslake Energy Inc.
James R. Pagnum, 210-841-5759
President
Fax: 210-820-2609
info@kingslakeenergyinc.com
http://www.kingslakeenergyinc.com
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