Project Overviews
The year of 2008 was another exciting year for Infinity Oil & Gas, Inc. This year Infinity will have 16 different operators drilling on over 1,300,000 acres of exploration and development leases across the United States.
Appalachian Basin
Infinity was one of the initial players in the Marcellus Shale play in the Appalachian Basin. Through this early entry, we were able to amass large contiguous acreage positions. We continue to expand upon the 380,000 acres of leasehold we have acquired in the thickest and most thermally mature Marcellus shale areas. Infinity has two operating partners who are currently drilling and testing our project areas. We expect well completion hookups into pipelines during the first quarter of 2009 in Southwestern Pennsylvania. Our West Virginia activity should begin by mid-year 2009.
Fort Worth Basin
We ended 2008 with our 220th development well on our Barnett Shale discovery in Johnson County, Texas. Our operating partner, Chesapeake Energy, has achieved the best per well performance for Barnett gas production in the Fort Worth Basin. To date, our best well surpassed 11 MMCFGPD, exceeding any wells at Newark East Field. Our average per well gas rates have averaged over 3.8 MMCFGPD. This seismically controlled fractured shale project was successfully acquired in 1999, just prior to heavy competition from EOG, Mitchell (Devon). Having established a successful business model, we have tried to be the first mover in most of the other economic shale plays around the country.
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 2009. 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. Commodity prices will dictate the activity for this project.
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 on our leasehold. The majority of the acreage is leased from the BLM. Activity has been curtailed by ongoing EIS restrictions.
Rock Springs Uplift
2008 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.
Powder River Basin
In 2006 Infinity renewed its interest in continuous oil sand reserves in the Powder River Basin of Wyoming. Infinity has been building its leasehold in this area for two years with the first permit and location built at this writing. We’re very excited to see the results of this first prospect. We expect that the field will be drilled out using horizontal well technology.
Raton Basin
III Industries 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 Western Kentucky shale gas project which drilled two evaluation test wells in 2007. This 25,000 acre project will target thermogenic gas within the New Albany 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 Basin
Infinity Oil & Gas, Inc. is optimistic that we will find success in the Floyd shale in the Black Warrior Basin. Our seismic interpretation is almost completed. We are working with the Bureau of Economic Geology for a basin analysis for the Floyd shale. Presently, 10 test wells are planned on our 250,000 acres.
Woodford Shale Project
Infinity has two Woodford shale projects that are very exciting. Cornerstone is the operator of the northern play and have drilled two wells to date. Venoco, Inc. will begin drilling our southern project in mid-2009.
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.
