1st NRG Corp., an exploration and production company headquartered in Denver, Colorado, has issued its monthly corporate update to shareholders on the company's progress.
In November, the company announced the potential acquisition of a natural gas gathering system. The system covers over 324 miles and gives the company access to over 100 000 acres of potential development. The purchase and sale agreement is almost finalised and we still anticipate to close in 1Q17.
The company entered into a Letter of Intent to purchase over 600 coal bed methane wells through its wholly owned subsidiary 1st NRG Wyoming and has identified a number of other potential acquisitions. We expect to begin negotiations on the purchase and sale agreement soon with a goal to close in 2Q17.
The company expanded its activities into Ohio participating in a development of prospective acreage encompassing approximately 7000 acres. In 2014, a vertical test well was drilled, logged, cored and cased to a depth of approximately 7620 ft, testing the Utica Shale but ultimately completed in the Beekmantown Dolomite. The well was acidised and a pumping unit has been positioned, however while installing the down hole pump and rods the well blew out causing some damage to the surface equipment. The well remains shut in while repairs are made to the surface equipment.
The company had plans to bring the Clabaugh Ranch field in Wyoming back into production 1Q17, however we are still in discussions on the overall financing of the company which have delayed our ability to bring the field back online. As part of our financing, we plan to acquire the other 42% of the working interest in the field.
The company is in discussions to raise US$25 - 30 million dollars for the announced acquisitions and for these and others that are planned. We are striving to become a fully reporting company and achieve listing on a nationally recognised exchange. Our major concern right now is cash flow and completion of our targeted acquisitions which would mitigate that concern.
Read the article online at: https://www.worldpipelines.com/business-news/14032017/1st-nrg-corp-announces-acquisition-of-gathering-system-details-company-progress/