September 25, 2008
Avanti Energy to Commence Drilling in Appalachian Basin in Q1 2009
Capital City Energy has announced that its wholly owned subsidiary, Avanti Energy Partners, will complete plans for a five-well natural gas drilling program in the fourth quarter and commence drilling in the first quarter of 2009.
The drilling package will target the Clinton Sandstone in the Appalachian Basin, US. The Clinton Sandstone is less than 4,000 feet deep and will be drilled on 20-acre spacing.The target area is surrounded by other wells currently in operation that have produced an average of approximately 35 million cubic feet of natural gas per well during their first year of production. Overall, the cumulative life of each well is expected to produce approximately 175 million cubic feet of natural gas.
Avanti is currently working on securing a total of 2,000 to 3,000 acres in the target area. Avanti officials anticipate drilling and operating a total of 250 wells in the target area, completing 25 wells per year. Based on current natural gas prices and surrounding well-production data, 25 completed wells could generate gross revenues of $7.5 million in the first year.
Timothy Crawford, CEO of Capital City Energy, said: "Avanti has a unique combination of knowledge and experience in drilling in the Appalachian Basin, making this an exciting opportunity for Capital City Energy Group."