Red Fork fast-tracks Oklahoma project
Australia’s Red Fork Energy has fast-tracked its Eastern Oklahoma gas project
by 12 months after the company struck a deal with a US-based gas
transmission company to tap directly into a sales delivery line.
Building of compression facilities and tie-in to the sales line will allow the
development of Red Fork’s largest project - the 30,000 acre, 100%-owned
Eastern Oklahoma development - to be accelerated, with drilling now
scheduled to begin in the first half of this year.
The outfit’s current entire production and cash flow of 36.4 billion cubic
feet equivalent are coming from its 100% owned Osage project, with proven
and probable reserves of 36.4 billion cubic feet equivalent. Osage covers
about 5000 acres, or just 11% of the company’s entire 45,000-acre holding.
Red Fork’s development plan, prior to this deal being concluded, required the
construction of a 15-mile (24.1-kilometre) pipeline through the project area
to the nearest transcontinental pipeline at a cost of about $2 million. This
would have set back development until the second half of next year.
Red Fork will be able to sell and market gas produced from the East Oklahoma
project on the spot market, which has less federally regulated transport
costs, the company said.
04 March 2008 01:25 GMT
| last updated:
04 March 2008 04:40 GMT
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