HOUSTON, May 18, 2006 (PRIMEZONE) -- Falcon Natural Gas Corp. (OTCBB:FNGC) with Edwin S. Nichols Exploration, Inc. has started the planned development of the Pecan Station North Prospect with the first well started on May 14th.
Pecan Station North Prospect: Is an excellent low risk prospect located three miles north of the Pecan Station Field that has produced over 1.1 million barrels of oil from the Palo Pinto Lime. The Pecan Station North Prospect has multi-pay and multi-well possibilities in both the Palo Pinto Lime and the Harkey Sand, with both new well drilling and one re-entry/re-drill candidate.
The first well will initially be drilled to twin a well drilled in the 1960s that drill stem tested gas from the Harkey Sand (15 ft gas pay), with Palo Pinto Lime as a secondary objective. The offset well was never completed in the gas zone.
Palo Pinto Lime wells in the Pecan Station Field with log characteristics similar to those found in the re-entry candidate have initially produced at rates ranging from 100 bopd to over 600 bopd and have averaged approximately 150,000 BOE per well cumulative production.
Harkey Sand wells are capable of producing from 500 thousand cubic feet of gas per day to over 1 million cubic feet of gas per day with some individual wells exceeding 2 million cubic feet of gas per day per well.
Falcon Natural Gas Corp. has purchased 75% of the working interest (55.80% of the net revenue interest). Falcon also will pay its proportionate share of all G&G costs, third party prospect fees, land brokerage costs, lease bonus and all other similar costs of the prospect as per the agreement with Edwin S. Nichols Exploration, Inc.
Falcon Natural Gas Corporation, based in Houston, is a Natural Gas Exploration Company focused on the acquisition and exploration of commercial prospects in onshore areas of the USA. For more information visit www.falcongas.com.
Edwin S. Nichols Exploration, Inc., based in Meridian, Texas, is a privately-owned company incorporated in 1983. ESN has drilled, operated and/or participated in the drilling of hundreds of onshore wells in Texas, New Mexico, Kansas, Louisiana, and Oklahoma with industry partners including both major and independent oil companies, as well as private investors, and is the operator of the Hollins Prospect.