1st NRG Corp. (OTCBB: FNRC) is an exploration and production company headquartered in Ferndale, Washington. The Company is currently pursuing prospective acquisitions in coal bed methane (CBM) fields in the Powder River Basin of Wyoming.
1st NRG Corp. has an agreement to purchase all the issued and outstanding common stock of Cedar Resources, a private E&P company founded in 2004. Cedar Resources, as a wholly owned subsidiary, will remain the operator of the Clabaugh Ranch field in NE Wyoming which, with 37 wells, produces approximately 1.8 Million Cubic Feet Per Day (MMCFD). Cedar is reimbursed for third party drilling, completion and related field expenses as wells as COPAS overhead reimbursement of $660 per month per producing well, which is currently about $23,000 per month in revenue. Cedar is currently expanding its water disposal system to handle current produced water and the anticipated increase in disposal needs, as it undertakes the development of 29 additional wells. In August 2010, Cedar began drilling a 5 well development program.
Recently, 1st NRG signed a letter of intent to pay $2.7 million for another working interest owner in the Clabaugh Ranch field. The acquisition will be financed by the seller and 266,887 of 1st NRG common stock.
In a follow on transaction the Company has accepted an offer from Lance Petroleum to purchase all of their interest in lands adjacent to those operated by Cedar Resources.
| Our Internal Estimates of Reserves for |
|
| our proposed acquisitions: |
|
|
MCF
|
| Total Proven Reserves (1P) |
5,893,079
|
| Total Probable Reserves (2P) |
7,591,932
|
| Total Possible Reserves (3P) |
3,039,097
|
|
16,524,108
|
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