AMERICAN NOBLE GAS, INC. American Noble Gas, Inc. announced that the drilling rig has moved on location and is in process of spudding the initial well and setting surface casing. This marks the commencement of exploratory drilling operations regarding AMGAS's participation in its previously announced farm-out agreement (the “Hugoton Farm-out Venture”) to develop its natural gas, helium and brine mineral interests in the Hugoton Field in Haskell and Finney Counties Kansas. The Hugoton Farm-out Venture has been granted a permit by the State of Kansas for its initial well in which AMGAS has acquired a 40% participation together with three other venture partners and has commenced exploration drilling operations with surface casing to be cemented within thirty-six (36) hours and the target pay-zone formations expected to be reached with testing beginning on or about May 3 2022.
The initial exploratory well will evaluate multiple members of the targeted formation applying normal and unconventional evaluation methods. Such methods will include appropriate gas detection, electric and radioactive logging in order for the Hugoton Farm-out Venture to determine the commercial viability of the natural gas and helium reserves in place. While utilizing unconventional methods, the exploratory well may reveal important data on previously untapped gas in-place reserves of natural gas and helium gas which may indicate the discovery of substantial new reserves within the Hugoton Gas Field.
AMGAS and its Venture partners will perform all testing of the target zones it considers necessary to determine the existence of natural gas and helium reserves in-place including the commercial viability of producing both natural gas and helium in the exploratory well. The exploratory well will be completed for production activities pending results of the relevant testing procedures and processes. The Company will apprise shareholders of its progress including the release of appropriate test data and initial production data assuming the exploratory well is completed for production.
