Project Overviews
The year of 2006 was another exciting year for Infinity Oil & Gas, Inc. This year Infinity will have 15 different operators drilling on over 900,000 acres of exploration and development leases across the United States.
Fort Worth Basin
The year ended with its 175th development well on our Barnett Shale discovery in Johnson County, Texas. Infinity Oil & Gas, Inc., with operators Chesapeake Energy, has extended the best Barnett gas production in the Fort Worth Basin. To date, our per well gas rates have surpassed 11 MMCFGPD, exceeding any wells at Newark East Field. This seismically controlled fractured shale project was successfully acquired just prior to heavy competition from EOG, Mitchell (Devon) and the many late arriving companies. Reserve estimates reach nearly one TCF of gas.
Infinity Oil & Gas, Inc. has expanded our position in the Barnett Shale with the leasing of 30,000 acres of a newly discovered sweet spot for this prolific reservoir. Fifteen wells have confirmed gas on our Rodeo Project and our operating partner is presently refining their completion techniques. This area could increase our Barnett reserves by another one-half TCF of gas.
Green River Basin
EOG has purchased our Antelope Arch Project in the Green River Basin from Encana and plans do drill its second horizontal well on the property in the second quarter of 2007. Infinity Oil & Gas, Inc. and its affiliates own over 50,000 acres on this large, thermally hot and overpressured Wyoming structure. This year will see further development of Cretaceous sands and fractured shales. Another operator is developing the 14 well pilot program in the 50 to 60 feet of high-volatile bituminous Mesa Verde coalbeds. Five Federal Units have been secured on this project to date.
We are still in the process of evaluating the test wells on our Green River Shale, Lonetree Project. This 62,000-acre, fractured shale project is surrounded by Anadarko and Encana. An engineering report indicates the existence of over 30 TCF of gas in place in Green River sediments on our acreage within shales with TOC's as high as 20 percent. The bitumen in place within these oil shales is estimated in the billions of barrels.
Labarge Platform
The year further confirmed our discovery of coalbed methane at our LaBarge CBM project. The 35 to 80 feet of hi-vol bituminous A and B coals here have been evaluated by an independent engineering firm to contain as much as 500 BCF of methane from depths between 1,500 to 3,500 feet. A second five well pilot has been drilled with plans to begin drilling the over 150 wells available on our leasehold upon the soon-to-be-signed EIS.
Rock Springs Uplift
2006 saw the continued drilling of additional wells at our Pipeline Project with another 38 permits to drill in hand. Infinity Oil & Gas, Inc. and Infinity Oil & Gas of Wyoming control over 30,000 acres of coalbed methane and oil leases. This project produces at rates of 433 BO and 6,000 MCF of gas per day. We hope to add another 200 wells to Infinity's portfolio.
Raton Basin
Rosewood now operates 32 wells on our Raton Basin CBM Project with plans for 20 more wells this year on our 60,000 acre project. JW Operating purchased a majority interest in our five Goemmer Wells on the western flank of our acreage position and is presently producing gas and developing this property.
West Texas
Infinity’s operating partner is currently completing its newest discovery on its 100,000 acre project in West Texas. If this project fulfills its current expectations, we will develop nearly 1 TCF of gas from 500 wells.
Illinois Basin
Forest Oil Corporation is acting as operator on our 2004 Kentucky Shale Project which drilled two evaluation test wells in 2006. This 25,000 acre project will target thermogenic gas in shales, cherts and silts within the Ohio Shale. Forest is presently increasing the acreage block within the AMI with Infinity Oil & Gas, Inc. A well drilled upon our leasehold has tested over 500 MCFG per day with a minimal frac.
Black Warrior, Marfa, Illinois Basins
Infinity Oil & Gas, Inc. found partners for over 200,000 acres of fractured shale projects in 2006 with expectations of drilling more than 10 wells on these projects in 2007. These projects range from Texas to Mississippi in three different basins. Engineering studies estimate well over 1.5 TCF of gas lying on these properties.
Appalachian Basin
Infinity is presently leasing on our most recent projects in the Appalachian Basin in the eastern United States. We expect drilling to begin on these project areas in the first quarter of 2008.
Other Basin Projects
Infinity Oil & Gas, Inc. has numerous other projects being developed throughout the United States that are held in strict confidentiality and not available for comment.
Infinity Oil & Gas, Inc. currently has over 25 landmen buying leases in four separate exploration projects for our future development.
Infinity Oil & Gas, Inc. is excited about the future. We remain flexible and opportunistic in our investment outlook in order to optimize cash flow and reserve growth potential. We are best known for our ability to identify and capture projects that contain potentially large, yet low-risk reserves attractive to the industry. With this in mind, we have great expectations for the additional opportunities that now lie before us.
