HOUSTON, March 14, 2006 (PRIMEZONE) -- Falcon Natural Gas Corp. (OTCBB:FNGC) with Edwin S. Nichols Exploration, Inc. plan to immediately start development of the Hollins Prospect and have selected a drilling contractor.
The Hollins Prospect is a low risk, infill offset and developmental offset drilling prospect located along a very prolific area of the Eastern Shelf in northwestern Nolan County, Texas that will target the Canyon Sand over (+/-) 1,480 acres of leasehold position and should ultimately result in the drilling of 20 to 25 wells. The Prospect is in trend with numerous producing fields and is located 1 mile west of the Sweetwater Canyon Unit that has produced over 4.8 million barrels of oil. Good subsurface information including well logs, drill stem tests, completion and production data was available in the preparation of this prospect. Most wells drilled on this prospect will be infill offset or developmental offset wells. A high success rate is expected with this development program. It is estimated that approximately 1.5 million barrels of oil equivalent could be recovered from the prospect area. The total cost to develop a 20-well field is estimated to be approximately $14 million.
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 U.S. 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.