?1 Two New Albany shale producers in western Kentucky are being reported by Kentucky USA Energy Inc., based in London, Ky. The #1 Billy Johnston, in 10-G-27E, Lone Star Consolidated Field, Christian County, has flowed gas at an absolute open-flow rate of 275,000 cu. ft. per day. The well was drilled to a total depth of 2,387 ft., and had a 112-ft. producing zone between 2,150 ft. and 2,262 ft. Recorded shut-in pressures built to approximately 757 psi. Also in Christian County, #3 Hunter-Wells, in 3-G-27E, Dukes Ridge Consolidated Field, had a daily absolute open-flow rate of 50,000 cu. ft of gas. The well was drilled to 2,420 ft. and is producing from 2,230-50 ft. with shut-in pressures at about 806 psi. Additional wells are being drilled by the operator: rigs are currently on location at the #1 Hunter and #2 Francis-Grace, both in Dukes Ridge Field. The company also has reached a total depth of 2,430 ft. at the base of the New Albany shale at its #1 Walker in 1-G-27E, Hardeson Consolidated Field, Todd County, Ky., but no additional details were provided.

2 According to the Southeastern Oil Review, Saga Petroleum LLC is drilling an 8,000-ft. northwest offset, #2 Winters, in Section 35-18s-16w, Pickens County, Ala. The most recent reports from #2 Winters indicate that it has reached 4,975 ft. and 51?2–in. casing has been set to 4,972 ft. The well is located on a 320-acre unit that includes half of Section 35. Another Saga Petroleum wildcat, #1 McShan 2-1, had a production-test flow of 1.35 million cu. ft. of gas per day through a 12/64-in. choke at 1,030 psi flowing tubing pressure. The well is in Section 2-19s-16w, about two miles north of Ethelsville in Pickens County, Ala. Production is from Pottsville perforations at 5,060-88 ft. with a total depth of 5,199 ft. Saga Petroleum, based in Denver, operates and drills oil and gas wells in Wyoming, Texas, West Virginia, Colorado, New Mexico, Montana and Alabama. Saga’s natural gas and oil production annual revenues exceed $70 million.

3 PAR Minerals Corp., based in Shreveport, La., has drilled a wildcat that is producing 595 bbl. of 41-degree oil and 216,000 cu. ft. of casinghead gas through perforations at 12,454-73 ft. in Smackover. The #1 Lawco-McCorquodale 12 is located in Section 12-7n-1w in Clarke County, about nine miles northwest of Jackson, Ala. It was drilled to a total depth of 4,000 ft. in Lower Tuscaloosa. Closest production is about seven miles southeast in Stave Creek Field, which was completed in 1979 and has produced more than 3 million bbl. of crude and 1.29 billion cu. ft. of gas.

4 Murphy Oil Corp. has made a deepwater gas discovery in the DeSoto Canyon area. The #1 OCS G10440 hit 120 net ft. of dry natural gas pay at the Dalmatian discovery in the southeastern corner of DeSoto Canyon Block 47. The well was drilled in 5,883 ft. of water with a bottom-hole location to the east on adjacent Block 48. Plans are to develop the well as a subsea tie-back to existing infrastructure in the area. El Dorado, Ark.-based Murphy owns a 50% working interest in Dalmatian. Project partners include Newfield Exploration Co., 37.5%, and Mariner Energy Inc., 12.5%.

5 A Michigan Department of Natural Resources sale of 2,777 tracts encompassing 263,250 acres in the state drew high bids totaling $4,021,637 for 223,218 acres, an average of $18.02 per acre. Most of the tracts leased at the sale went for the sale’s minimum bid of $13 an acre. The most successful bidder at the sale was Denver-based EnergyWest Corp., which submitted high bids and rental fees totaling $3,158,271 for 148,141 acres, an average of about $21.32 an acre. Traverse City independent O.I.L. Niagaran LLC paid $1,108,005.70 for 65,820.85 acres; Sturgeon Point Development Co., Traverse City, submitted high bids and rental fees of $52,016.60 for 1,301.06 acres; and Traverse City independent Savoy Energy LP paid $52,750.68 for $262.84 acres.?Cheboygan County, Mich., brought in the greatest amount of high bonus bids at the sale.

6 According to the Unconventional Natural Gas Report, Unbridled Energy Corp., Calgary, and its joint-venture partners have drilled six tight-gas wells that are producing between 70,000-130,000 cu. ft. of gas daily after being treated with new stimulation treatments and techniques. Unbridled’s wells are Silurian Medina sand formation producers that are spread across the company’s 15,000 acres in Chautauqua County, N.Y. As part of a larger ongoing drilling program with more than 60 locations identified to date, the company is in the process of permitting nine additional natural gas wells and acquiring another 980 gross held-by-production acres.

7 Atlas Energy Resources LLC, Pittsburgh,?announced that it has completed 98 Marcellus shale wells, and is producing almost 25 million cu. ft. per day through a pipeline owned by affiliate Atlas Pipeline Partners LP. According to IHS Inc., Atlas can deliver 120 million cu. ft. per day into four different interstate pipelines and plans to double gathering capacity by the end of 2009. Aggregate production from Atlas wells exceeds 4 billion cu. ft. of gas, making Atlas the nation’s largest Marcellus shale gas producer. The company said it will drill 32 additional vertical Marcellus shale wells in its direct investment drilling program (Public 18A) through March 2009, and 75 additional vertical wells in subsequent programs during the remainder of 2009, including 12 additional horizontal wells where it will have a 100% working interest. Atlas controls 555,000 acres in the Marcellus shale fairway, including 271,000 acres in its focus area of southwestern Pennsylvania.

8 IHS Inc. reports that Chesapeake Energy Corp., Oklahoma City, and Stavanger-based StatoilHydro will jointly develop Chesapeake leaseholds in the Appalachian Marcellus shale play. StatoilHydro will acquire a 32.5% interest in Chesapeake’s Marcellus shale assets for $3.375 billion, and Chesapeake will have a 67.5% working interest. The assets include approximately 1.8 million net acres of leasehold, of which StatoilHydro will own approximately 600,000 net acres and Chesapeake will own approximately 1.2 million net acres. StatoilHydro will fund 75% of Chesapeake’s 67.5% share of drilling and completion expenditures from 2009-12. Chesapeake plans to continue acquiring leaseholds in the Marcellus play and StatoilHydro will have the right to a 32.5% participation. In addition, the two companies have agreed to an alliance to jointly explore unconventional natural gas opportunities worldwide.

9 As reported by the Unconventional Gas Report, Trans Energy Inc. has begun drilling #7H Anderson in Wetzel County, W.Va. The well will be drilled and completed horizontally in the Marcellus shale. Trans Energy plans to drill the vertical portion to a depth above the kick-off point and set casing. A second, larger rig will later drill the horizontal portion to about 7,000 ft., and company plans call for keeping rigs drilling continuously through 2009. An independent exploration and production company located in St. Mary’s, W.Va., Trans Energy focuses on Appalachian Basin oil and gas and continues to expand its acreage position centered on Wetzel, Marion, Marshall and Doddridge counties, which it believes to be the heart of the most prolific Marcellus resource in Appalachia.

10 A 6,900-ft. wildcat is planned by?Denver independent Anschutz Exploration Corp. targeting Black River in central New York’s Cortland County about two miles northeast of McGraw, N.Y. The wildcat, #1 Nael Cam Farms, will be drilled at a site in Quad Section B, McGraw Quad, Cortlandville Township, on a 288.5-acre unit.?The new venture is about three miles from a Black River discovery, #1 (23836) Bilodeau, completed in early 2000, that flowed about 750,000 cu. ft. of gas per day from an acidized Black River interval at 7,153-98 ft.

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