Petrel Energy eyes early cash flow from Barnett Shale gas wells - Proactiveinvestors (AU)

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Petrel Energy www.petrelenergy.com

Petrel Energy Limited (ASX:PRL) is an Australian based petroleum exploration, development and production company with projects in Uruguay, Spain and Canada.
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Petrel Energy eyes early cash flow from Barnett Shale gas wells

Wednesday, February 22, 2012 by Bevis Yeo

Petrel Energy eyes early cash flow from Barnett Shale gas wells

Petrel Energy (ASX:PRL) expects first production from its Barnett Shale operations in Erath County, Texas, to begin soon, providing it with early cash flow.

Operator The Cumming Company (CCI) is currently installing surface infrastructure including the hook‐up of the saltwater disposal well and the sales gas line into the nearby Enbridge pipeline.

Once this is completed in March, perforation, fracture stimulation and completion of the three gas producers should start. This should be followed quickly by the start-up of production.

Petrel has a 25% working interest in 6,600 leased acres and has an agreement with CCI to lease a further 10,000 acres in the same area, which Petrel can take up to a 73% working interest.

Petrel has already agreed to lease the first 830 leases and is nearing finalisation on the deal.

The Barnett Shale was the first major shale gas development in North America, which witnessed explosive growth from about 2002 onwards.

Operators in the area include EOG Resources (NYSE:EOG) and Devon Energy (NYSE:DVN).

Petrel was formerly known as Orion Petroleum prior to its merger with unlisted Petrel Energy Pty Ltd.

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