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Sat, 24 Dec 2005 10:43:54 -0800
KOKO PETROLEUM (KKPT) - THIS STOCK IS UNDISCOVERED S T O C K GEM
Current Price: 1.20
Symbol - KKPT
Watch out the stock go crazy tomorrow 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.
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