DENVER, CO, March 21, 2018 (GLOBE NEWSWIRE) -- 1st NRG Corp. (OTCBB: FNRC.PK), an exploration and production company headquartered in Denver, Colorado, has issued its Q1 2018 corporate update to shareholders on the Company’s progress.
Previously we announced our participation in a new joint venture to be owned 20% by the Company and 80% by others to acquire oil and natural gas reserves. The JV has negotiated contracts to purchase:
Approximately 60,000 acres containing approximately 600 wells to be returned to production. After closing, work will begin to increase production from existing wells to an estimated 20 MMCF/D. The anticipated work program will take 12 months and will be a combination of turning on inactive wells and targeting strategic workovers coupled with related cost optimization. Reserves are estimated at 43 BCF of developed 3P natural gas reserves per a third party engineering report.
Approximately 400 shallow CBM wells on 92,000 net acres currently producing 25.5 MMCFD. The wells contain an estimated 98 BCF of 3P reserves natural gas reserves per a third party engineering report and the acquisitions include mid-stream assets consisting of 72 miles of pipeline capable of 125 MMCFD of throughput capacity.
The joint venture has non-dilutive funding committed to the projects, and the JV is raising an initial round of equity for escrow deposits and due diligence prior to closing.
Possible follow on acquisitions include the 42% of Clabaugh Ranch not owned by 1st NRG, the natural gas gathering system we have been doggedly pursuing and another 422 CBM wells with an estimated 45 BCF of developed 3P natural gas reserves per a third party engineering report.
Our web site is currently being renovated. Our previous web site was difficult to maintain and update. We are also finishing Q3 and Q4 2017 financials and reporting for the OTC Markets.
About 1st NRG Corp.
Our activity has been centered upon the development of coal bed methane reserves in Wyoming where through our wholly owned subsidiary, 1st NRG Wyoming, we operate and hold a working interest in 43 producing wells, 3,059 undeveloped acres and an estimated 18.5 BCF net to our interest. The undeveloped acreage could be permitted for up to 36 additional locations which are characterized by what we believe to be low geologic risk, a repeatable development opportunity and are offsetting wells which all demonstrated developed coal seams in the Schwartz, Anderson, Canyon, Cook and Wall formations.
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Forward-looking statements in this release are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 as amended. A statement identified by the words “expects,” “projects,” “plans,” “feels”, “anticipates,” and certain of the other foregoing statements may be deemed “forward-looking statements.” Although 1st NRG Corp. believes the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release.
Contact:
Brad Holmes
Energy IR: b_holmes@att.net
(713) 304-6962
Source: GlobeNewswire
(March 21, 2018 - 9:37 AM EDT)
