Next Generation Corporation Signs Agreement to Acquire Lease in Prolific Oil and Gas Region of West Virginia
LORTON, Va., May 20, 2013 /PRNewswire/ — Next Generation Corp (OTCQB: NGMC) today announced that it has entered into an agreement to acquire a natural gas and oil lease for a 134 acre parcel in Mason County, West Virginia, increasing its portfolio of energy producing properties to 2,154 acres in the Appalachian region, in addition to its West Texas and Louisiana royalty holdings.
The large parcel in southeastern Mason County is located in a prolific natural gas region of southwestern West Virginia. The most notable geological features of this region are the Lower Huron (Devonian) shale at a relatively shallow drill depth (3200 to 5000 feet) and Marcellus shale, with Utica shale, lying at deeper levels underneath. The deepest pay zone in this region is the Trenton Black River Play lying below the Utica shale.
“We believe this lease will be able to produce large volumes of natural gas at economically desirable drill depths. The Lower Huron shale ranges from 200 to 2000 feet thick and promises to be extremely productive. The Marcellus shale, Utica shale and Trenton Black River, which lie below the Huron, with drill depths up to 10,000 feet, offer a significant upside potential. The prospect of multiple pay zones within the stratified formations are always a highly desirable attribute when acquiring a natural gas lease,” Darryl Reed, Next Generation Energy CEO said.
Peggy Williams, the noted author from the Oil and Gas Investor.com, stated in a recent article that “horizontal wells in this shale deliver five times the reserves of traditional vertical ones.” She also emphasized that “what’s really astonishing about the Lower Huron play is that recovery efficiencies are 40% for a single-leg lateral, an exceptional jump from 8% recovery in a typical vertical shale producer. “It’s even more intriguing that plays such as the Lower Huron are flowering in such a well explored province.”
Mr. Reed concluded: “We are very pleased to add this 134 acre property to our portfolio. Our mission is to continually add and manage valuable income producing assets to our existing portfolio. Our portfolio is heavily weighted in the energy sector, however, we are always evaluating the acquisition of income producing properties in energy and other sectors that have long term intrinsic value and the added benefit of portfolio diversification.”
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SOURCE Next Generation Corp