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By: AllPennyStocks.com
Finding new energy sources in whatever form companies can do so is always
rewarding. And when the company making the discovery is a relatively small
up-and-comer, the news is all the more remarkable.
So it was when Vancouver-based junior oil and gas company Nextraction Energy
Corporation (TSX-Venture:NE) announced in late April that, in concert with its
wholly-owned subsidiary, Nextraction Energy (U.S.) Inc., the Companies announced
the results of a solid natural gas find in Tennessee. The two branches of NE
referred to estimates by Colorado-based MHA Petroleum Consultants, Inc. of
Original Gas in Place ("OGIP") ranging from 419 Billion Cubic Feet ("BCF") to
2.5 Trillion Cubic Feet ("TCF") with a most likely estimate of 903 BCF for
Nextraction's Appalachian Basin Chattanooga (Devonian) Shale prospect.
The more conservative estimates by MHA called for gas in place volumes of 8.242
BCF/640 acre section and 3.825 BCF/640 acre section, respectively.
What NE says it next plans to do is finish its vertically drilled Mountain
Minerals #5 well in the Devonian shale and three overlying formations to test
initial flow rates for the well. NE then plans to continue its drilling program
that includes completing three additional wells this year, and 25 wells by the
end of next.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the
exploration and development of oil and gas resources in North America.
Nextraction targets projects with known reserves that provide lower-risk,
high-return development opportunities in both conventional and unconventional
resource projects, where its technical expertise can be applied to enhance
production. NE is also developing a tight-sands gas play on the Pinedale
Anticline in the Green River Basin region of western Wyoming, besides its work
near Chattanooga.
The completion program on Pinedale was announced in March. As well, a local
oilfield service company, with experience in fracing nearby Pinedale wells, has
submitted a proposed completion program to Nextraction's operator, Vantage
Energy. Geological logs, gas shows and other technical details have initially
confirmed the economic potential of one of the property’s main wells. An
independent reserve report confirming reserves should be available at the end of
the completion process.
The news of the Appalachian find brought the stock price to a new 52-week high
of $1.30 on April 27, a far cry from the gulch of 35 cents hit last June. With
energy prices on the way back up, even a stock at its peak for the year could
prove a bargain with its prospects climbing by the day. This is a stock that
merits another look.
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