UPDATE: DEVELOPMENT OF USA SHALE GAS PROJECT AT HELPER PROJECT, UTAH
- 100% owned Helper Project, Utah contains significant shale acreage
- Recent industry transactions give renewed focus on the unconventional gas sector
- In line with the recent Strategic Corporate Restructure, the Helper Project Review will be accelerated to maximise shareholder value
In accordance with the Strategic Review announced on June 15 and in light of recent industry transactions, Marion Energy (ASX: MAE) will accelerate its review of development options for Helper's significant potential shale gas resource. This review is expected to take 30 - 40 days to complete.
The Company will make a decision on the future of these assets shortly. The assets under review include:
- Shale (and additional Coal Seam Gas) resource with a potential recoverable resource (based on report by independent assessors Ryder Scott Petroleum Consultants) at 2 Tcf of gas.
Marion has an inventory of 82 wells to be drilled into the Shale and Coal Seam Gas resource at Helper. The company has previously drilled two wells, Cordingley Canyon (CC), CC 15-5 and CC 10- 1 into the Mancos Shale and both wells established the presence of gas in the well reservoir. Only a forty feet section of the CC 15-5 well was tested and it is estimated there is approximately 2,200 feet of net gas pay in this well.
- Conventional (and additional Coal Seam Gas) resource. Marion has seven wells drilled with flow rates during testing operations collectively established at a level of 8.4 million cubic feet of gas per day from conventional and coal seam gas measures. These seven wells were all fracture stimulated and completed and tied into production infrastructure. The Board believes that these wells will need to undergo a limited well workover program to bring them up to full production.
A combination of experience gained in workover operations at the Company's Clear Creek project plus the Company's exciting prospect acreage and the recent high interest in unconventional assets puts Marion in a strong position to realise full value for this important part of the company.