KO KO PETROLEUM (KKPT) - Friday Alert Up Over 100%
Current Price: 1.60 Up $1.07 In Last 7 days
Symbol - KKPT
Watch out the sto ck go crazy Friday morning
KOKO Petroleum, Inc. (KKPT) issued an update on its working interest investment in two wells in the prolific Barnett Shale Play located in northern Texas.
Under the terms of the participation agreement with Rife Energy Operating, Inc. (the program's operator), KOKO Petroleum has acquired a minority working interests (approx. 10%) in the drilling and completion of two wells; the Boyd #1 and the Inglish #2 both of which have been drilled but not yet completed. The operator is in the process of setting casing on the Inglish 2 and the Boyd is awaiting a sufficient water supply to start the completion.
Due to the heavy influx of major operators in the area (Encana and XTO), scheduling completions and any other types of oil field services has been very difficult. Operators in the area have had to schedule well completions three to four months in advance. This coupled with the fact that Northern Texas has experienced a major drought causing serious shortfalls of local water. Rife, as an alternative, has drilled a water well, which was the source of drilling water for the Inglish 2 and Boyd 1. Rife has five wells that have been drilled and are awaiting completions.
The Barnett Shale is the largest natural gas play in Texas. It is presently producing 900 MMCF of gas per day and is considered one of the largest U.S. domestic natural gas plays with sizable, remaining resource potential. The first Barnett Shale wells were drilled and completed in the early 1980s by Mitchell Energy of Houston, Texas. According to an in-depth 2004 sector report on the Barnett Shale, developed by Morgan Stanley (MWD), the Barnett Shale play is estimated to hold reserves in the non-core area that could be as high as 150 BCF per 1,000 acres. The report estimated that because of the amount of gas available in the area, successful wells in the Barnett Shale should be economically viable in almost any gas price environment. "The well logs are very encouraging, as were the wells they offset. Our operator is very resourceful and we should have these wells completed by the end of the year," says Ted Kozub, President of KOKO Petroleum, Inc.
On the Corsicana front, KOKO and its Partner have applied for the drilling permits to commence the first 15 Nacatoch wells, casing is being delivered to the site and drilling will commence upon receipt of the permits.