DENVER, CO — (Marketwired) — 10/21/13 — 1st NRG Corp. (OTC Pink: FNRC), an exploration and production company which currently develops and produces coal bed methane reserves (CBM), will begin drilling of CBM properties in Wyoming.
1st NRG Corp. (FNRC) has initiated a plan of development encompassing the drilling and completion of eight Federally permitted locations in Wyoming–s Powder River Basin. FNRC holds 100% of the working interest of these locations before payout, and 66% after payout. Permits from the State of Wyoming are currently being prepared for State approval. Our current CBM properties are characterized by what we believe to be low geologic risk as well as a repeatable development opportunity. The planned development is offset development wells to a field which encountered developed coal seams in the Warner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall formations. Successfully instituting these drilling plans would significantly increase FNRC production revenues.
Market conditions for natural gas have improved significantly. The July 2013 Energy Information Administration (EIA) information reported average daily consumption of natural gas in the United States from January 2013 through July 2013, averaged 72,094 bcfd which was an increase of 1.25% when compared to the same period in 2012 when average daily consumption was 71,203 bcfd. During these same periods, average daily production of natural gas in the United States increased only 1.05% from 65,485 bcfd in 2012 to 66,178 bcfd. The tightening natural gas market is also reflected in higher commodity prices. For comparison purposes, 1st NRG Corp. (FNRC) received an average price of $3.36/mcf compared to $2.12/mcf during these same periods ending July 2013 and 2012 respectively. Moving the natural gas to the market (gathering, fuel and taxes) FNRC incurred an average transportation cost, before operating expenses, of $1.31 and $1.05/mcf during these same periods ending in July 2013 and 2012.
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Forward-looking statements in this release are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words “expects,” “projects,” “plans,” “feels,” “anticipates,” and certain of the other foregoing statements may be deemed “forward-looking statements.” Although 1st NRG Corp. believes the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release.
Contact:
Brad Holmes
Energy IR:
(713) 654 4009