"Petrol announced recently that it completed a private placement of equity with gross proceeds of $6.6 million which will allow the company to begin to drill its leases in eastern Kansas and western Missouri," stated Joe Blankenship, vice president research of Source Capital. "Petrol has leases on approximately 165,000 acres in the area and has an objective to drill 25 wells in the fourth quarter of 2004.
"The ease of access for drilling and completion, as well as the proximity to major natural gas transmission lines, means the company should be able to have commercial production from these wells in the first part of next year.
"The company's leases are on properties that have well defined geological records of substantial coal deposits, the source of CBM. Petrol indicates that they will continue to pursue property acquisitions for reserves and producing wells; however, the principal emphasis will be drilling, completion, and production, transforming the company to a significant production company by this time next year."
Publication date: 10/25/2004