NORTHEAST APPALACHIANS

MARCELLUS SHALE EXPLORATION

 

Ammonite Corporation, as operator, with geotechnical partners Billman Geologic Consultants, Inc., Mars, Pennsylvania and Catheart Energy, Inc. Sugar Land, Texas, have originated a Devonian Age Marcellus Shale gas “resource” play in Eastern Pennsylvania. at depths between approximately 5,000 and 7,500 feet. The primary objective Marcellus Shale in the region ranges from 100 to over 300 feet thick, has  TOC of 1.75 to 3.4 %, and vitrinite reflectance of 2.5 to over 3.0 % Ro. Secondary objectives include potential natural gas reservoirs in the underlying Devonian Age Onondaga Limestone, Huntersville Chert and Oriskany formations, as well as the deeper Ordovician Age Utica Shale, and possibly multiple fractured siliciclastic and carbonate reservoirs in the Cambro-Ordovician, including the Trenton-Black River formations, in structural traps.  A proprietary gravity and magnetic study reveals the regional fracture trends that enhance natural fracturing within the Marcellus Shale.  Within the mapped area of over 14 million acres in northeastern Pennsylvania and adjacent New York, four acreage acquisition trends area are identified on the basis of  our mapping that extend over more than one million acres.  Our recent lease checks indicate that acreage is available in these trends.

 

Cabot Oil and Gas Corporation has been completing vertical wells with a 30 day average IP of over 750 Mcfgd and recently reported a horizontal well completion with a 24-hour average IP of 6.4 MMcfgd after frac.

 

Joint venture participation by a limited number of petroleum industry companies and qualified private investors is sought to fund: lease acquisition, geophysical surveys, initial exploratory drilling to evaluate the Marcellus, and a significant developmental drilling program. Once commercial production is established in the Marcellus, then the joint venture will begin to evaluate the deeper potential of the play area.

 

Review of the Exploration Program Executive Summary and technical documentation for the exploration proposal is subject to execution of a confidentiality and non-competition agreement. Terms of this CA restrict interested parties from acquiring any mineral interests in competition with Ammonite within the subject project area for a two-year period.