OilVoice - Exterra Announces Drilling Plans for Their Barnett Shale Assets

Exterra Announces Drilling Plans for Their Barnett Shale Assets

Thursday, March 11, 2010

Exterra Energy Inc. has announced the beginning of the development of their Barnett Shale assets. Exterra will be partnering with Newtech Engineering to drill their 6 proven drilling locations in the Barnett Shale.

Exterra plans to drill these Horizontal wells over the next 9-12 months and expects first 12 months net revenue after operations to be over $9,000,000.

The assets that Exterra plans to drill are located in the tier 1 and 2 areas. These areas have shown to typically come on line at 1-1.5 MMCFD and will be producing an estimated 8 MMCFD after all of the wells are online. Exterra believes that we can have all of these wells drilled and online within the next 6-9 months.

Newtech Engineering will be partnering with Exterra to carry out all of the drilling and operations of these wells. Exterra is very excited about the partnering as Newtech is one of the most active drillers in the Barnett Shale, having drilled over 700 Barnett Shale wells. Newtech has drilled and handled project management for companies such as Chesapeake, XTO, EOG and Devon to name a few. Exterra believes with Newtech expertise and experience Exterra will have the same success as afforded the Larger operators and are very confident about their success.

Proven third party Engineering reports by Harper and Associates project these reserves to have an estimated PV 10 value of over $20,000,000 with a non-discounted future cash value of over an estimated $40,000,000. Exterra President Todd Royal stated, 'we are very excited about these plans and the partnering with Newtech Engineering. This will be a very successful campaign we believe due to the lower drilling costs and today's Natural gas prices. We are also excited about having a company such as Newtech to oversee the entire drilling process to help assure Exterra of success. Again this reinforces our business strategy to develop our current assets while looking for undervalued acquisitions.'