Blaze Energy Corporation, Inc. (BLZE) Announces Entry Into Fayetteville Shale
BOISE, Idaho, June 26 /PRNewswire/ — Blaze Energy today announced that its parent company, Environmental Energy Services, Inc. (EESV), has contributed its Fayetteville Shale asset into Blaze Energy. Blaze will participate with EESV’s current partners on a go-forward basis. The operating partner and other participants remain unchanged. The asset includes participation in over 45,000 gross acres in the heart of the Fayetteville Shale play.
The Fayetteville Shale field is an unconventional gas reservoir located on the Arkansas side of the Arkoma Basin. The thickness of the Fayetteville Shale ranges from 150 to 300 feet and depth from 1500 to 2000 feet. The shale is a Mississippian-age shale that is the geologic equivalent of the Barnett Shale found in Texas and the Caney and Woodford Shales found in Oklahoma. Blaze Energy believes that this field represents one of the most promising unconventional gas finds in the United States. According to information derived from wells already drilled in the Fayetteville Shale, the Company anticipates its initial production should exceed 2MCF/day per well. It is also anticipated that each well should have reserves of 2-3BCF. The cost to drill these wells will be between $2MM to $2.8MM, depending on the length of the horizontal lateral. The State of Arkansas allows sixteen (16) wells to be drilled per 640 acre section. EESV and its partners anticipate 800+ wells to be drilled on this project.
Blaze Energy’s ownership interest is broken down into three areas of mutual interests (AMI) and the company’s interest varies by AMI:
* Clinton AMI – approximately 25,000 acres with a 10% Working Interest * Pearson AMI – approximately 4,000 acres, 20% Working Interest * Remaining AMI – approximately 16,000 acres, 40% to 45% Working Interest
The Company also has rights to drill in the Moorefield and Chattanooga Shale layers which have also been identified as potential pay zones. Some companies have reported early excitement about these zones but Blaze Energy has yet to do substantial diligence on these pay zones.
Blaze Energy’s Operating Partner has already integrated two sections for drilling. It has 25 more sections under review and expects to complete the process over the next 12 months. Initial drilling on the two integrated sections is to begin August 1, 2007. The Company does not anticipate any problems getting production to point of sale.
More information can be found at Blaze Energy’s website.
Blaze Energy is a majority-owned subsidiary of EESV. More information about EESV can be found on its website, http://www.eesvinc.com/.
About Blaze Energy:
Blaze Energy is a natural gas exploration and production company actively engaged in the Fayetteville Shale gas project in Arkansas. Blaze Energy is an active partner in significant prospective acreage blocks in Van Buren, Cleburne and Conway counties. For more information please visit http://www.blazeenergy.net/.
About EESV:
Environmental Energy Services, Inc. (EESV) is an independent oil and gas exploration and production company. It combines patented, cutting-edge technology and research with Monte Carlo simulation-type analysis to acquire almost exclusively hydrocarbon energy resources for development and, ultimately, production. With its corporate headquarters located in Boise, Idaho, EESV through its various holdings and subsidiaries, participates in and/or controls resources and projects throughout North America. The company’s website address is http://www.eesvinc.com/.
This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to matters such as prospects, anticipated operating and financial performance. Actual prospects and performance may differ from anticipated results due to economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the company, including risks of production variances from expectations, market volatility, the level of capital expenditures required to fund ongoing drilling initiatives and the ability of the company to execute its business strategy. These and other risks are described in the company’s reports filed with the United States Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and EESV undertakes no obligation to update or revise these forward-looking statements.
Blaze Energy Corporation, Inc.
CONTACT: Mike Thompson, President of Blaze Energy Corporation, Inc.,+1-208-287-4471, mthompson@blazeenergy.net
Web site: http://www.eesvinc.com/
Web site: http://www.blazeenergy.net/