OMDA Oil and Gas, Inc. Announces Initial Hook-Up and Sales of Three Tennessee Natural Gas Wells
2005-11-22 09:44 ET - News Release
HOUSTON, TX -- (MARKET WIRE) -- 11/22/05
OMDA Oil and Gas, Inc. (OMOG), an oil and gas production company (OTC: OMOG), through its Chairman, Adam Barnett is pleased to announce the successful completion and initial sales from all three of its Gernt natural gas wells drilled with Young Oil Corp. The three wells were tied into the sales line on Friday and Saturday, and according to Young, they began producing at an approximate total of 120,000 cf/day. As the wells "clean up" by production, Young expects the production to increase over the first month and then stabilize. These wells typically show a small decline after a number of months and produce as long as 20 years. OMDA holds a 20% working interest in these wells.
As announced in a prior press release, these wells, as well as similar wells in the field are initially producing from the Monteagle and Ft. Payne zones. While there is a thick section of gas bearing shale in these wells, the cost of doing a full "frac" to commercially produce the shale has not been considered economical in the past. This type of procedure can cost as much as half again the price of drilling and completing the Monteagle and Ft. Payne; however, due to the current prices of natural gas, shale completions are now being done with excellent success in this field. If results from other wells in the field remain favorable, it is likely that one or more of our wells may be selected for a shale "frac" early next year.
Adam Barnett, CEO stated, "While the time from drilling to finally selling the gas from these wells turned out to be considerably longer than originally anticipated, management and consultants feel that the delays were caused by circumstance beyond Young's control. With this in mind and after results from these first three wells are further evaluated, it is my intent to start exercising our 'right of first refusal' allowing OMDA to participate in future gas wells of our choice on Young's 46,000 acres. The economic benefits verses the risks in this gas field are just too good at current prices to ignore."
LEGAL UPDATE
While the company, on advice of counsel, has been under a somewhat self-imposed information gag, events have actually been moving at a relatively fast pace. While many details still cannot be released, a trial date has now been set by the court in Harris County, Houston TX, for April 17, 2006. Counsel has recently stated their opinion that OMDA's case has continued to get stronger as more information is discovered.
More information on both OMDA's Oil and Gas projects and legal actions can be found at the Company's website. http://www.omogoil.com
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc and its wholly owned subsidiary's, OMDA Oil & Gas Management, Inc and Texas OMDA Drilling & Operating, Inc and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County TX, and is currently partnered up with Young Oil Corp, the largest Oil and Gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20% interest in a six well program and a first right of refusal on any other prospects on the Young leases.
Posts: 87 | From: Kansas | Registered: Nov 2005
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Watching CNBC, saying nat. gas starting to go up with the cold weather.Great for OMOG. Can get in * .007. Do your own DD
Posts: 87 | From: Kansas | Registered: Nov 2005
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Bouncing a little... with good news this could go back up from here... otherwise this bounce won't last... but it's at a good point here, fighting the drop...
Posts: 249 | From: NYC | Registered: Sep 2005
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1. Panola prospect now has three different groups who have expressed an interest in funding the drilling in the first wells. 2. We now have three wells producing in Tennessee, researching a fourth. 3. April, 17 planned court date for our lawsuit against former management and consultants. Our counsel continues to inform us that the strength of our case gets stronger as the court date approaches. 4. Joint Venture candidates are under review and will accelerate projects. 5. Concord Dome field, which has had over $1.4 million invested by two funding partners, deemed a commercial success, details are pending. 6. CEO has provided the truth to shareholders since the beginning and he owns 50+% of the outstanding shares
Posts: 62 | From: tucson | Registered: Jun 2005
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Anyone know if there is news on this one, its been slowly moving upward the last few days.
Posts: 3875 | From: ca. | Registered: Jul 2005
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it was hammered down at the end of last year. big plans for the new year something is in the pipes
Posts: 62 | From: tucson | Registered: Jun 2005
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