LEXINGTON, Ky., Sept. 23, 2010 (GLOBE NEWSWIRE) -- NGAS Resources, Inc. (Nasdaq:NGAS) announced today that its first horizontal Weir test well is ready to be placed on pump, and its second horizontal Weir test well will be treated September 27th with a 12-stage foam frac. Drilled in the Roaring Fork field to a vertical depth of 3,600 feet, the horizontal portion on the second well extends 2,500 feet.
The horizontal leg on the first test well was drilled 2,040 feet and treated with a 10-stage water frac. It will be placed on pump and connected to the natural gas gathering system around October 1st. Oil storage facilities are already set. The company expects to discuss 30-day production results at its third quarter earnings conference call.
"We are very encouraged with the initial oil and gas shows during clean up from our first horizontal Weir test well," commented William S. Daugherty, President and CEO of NGAS Resources. "Given the success of this well and our substantial undeveloped acreage in the Roaring Fork and Amvest fields, we plan to develop the Weir horizontally after completing the second test well, which had impressive oil and gas shows during drilling." Mr. Daugherty added, "We have a long and successful history producing this formation vertically. Drilling the Weir horizontally should contribute higher proportions of crude oil to our production mix."
The Weir sandstone is the primary producing formation in the Roaring Fork field on the Kentucky and Virginia border, where approximately 500 Weir wells are producing both oil and natural gas. In the Amvest field to the southwest, NGAS has 78 producing vertical Weir wells. The formation ranges from 170 to 180 feet in thickness in the area. NGAS has over 70,000 undeveloped acres in these two fields and plans to develop the Weir horizontally with 100-acre spacing upon successful completion of the second test well. The company is permitting four additional horizontal Weir wells for drilling this winter.
About NGAS Resources
NGAS Resources is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern Appalachian Basin. Core assets include over 360,000 acres with interests in approximately 1,400 wells and an extensive inventory of horizontal drilling locations. NGAS also operates the gas gathering facilities for its core Appalachian properties, providing deliverability directly from the wellhead to the interstate pipeline.
The NGAS Resources, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7617
Safe Harbor Statement
This press release contains "forward-looking statements," which are based on management's expectations and are subject to risks and uncertainties that may cause actual results, outcomes, timing and performance to differ materially from those expressed or implied by those statements. These risks and uncertainties are discussed in the company's annual report on Form 10-K for the year ended December 31, 2009, as filed with the Securities and Exchange Commission.
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