1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production company headquartered in Denver Colorado. Our activity has been centered upon the development of coal bed methane reserves where we hold a working interest in 42 producing wells, 1 permitted location, and 2,460 undeveloped acres upon which we intend to permit an additional 35 locations. Most recently, the Company has expanded its activities into one of North America’s most exciting shale plays, through a development of prospective acreage in SE Ohio encompassing approximately 7,000 acres. In November 2013, the Company announced its participation agreement with Energy Corporation of America (“ECA”), to jointly develop the SE Ohio acreage. Pursuant to the development agreement, ECA commenced drilling of the Townley 1S – vertical test well in September 2014. The Townley well reached TD at 7,620’ on 9/20/2014 and after running open hole logs and coring tools the well was cased on 9/26/2014. The Townley 1S identified potential reservoirs in the Utica shale, the Beekmantown Dolomite and the Conasauga formation. The size of the Beekmantown and Conasauga reservoirs was deemed insignificant for a company the size of ECA and the decline of oil prices delay any horizontal development in the Utica. 1 st NRG along with Keito Gas will continue with the completion of the Townley well, with each company owning 50%
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1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production
company headquartered in Denver Colorado. Our activity has been centered
upon the development of coal bed methane reserves where we hold a working
interest in 42 producing wells, 1 permitted location, and 2,460 undeveloped
acres upon which we intend to permit an additional 35 locations. Most
recently, the Company has expanded its activities into one of North America’s
most exciting shale plays, through a development of prospective acreage in
SE Ohio encompassing approximately 7,000 acres.
In November 2013, the Company announced its participation agreement with
Energy Corporation of America (“ECA”), to jointly develop the SE Ohio
acreage.
Pursuant to the development agreement,
ECA commenced drilling of the Townley
1S – vertical test well in September 2014.
The Townley well reached TD at 7,620’ on
9/20/2014 and after running open hole logs
and coring tools the well was cased on
9/26/2014.
The Townley 1S identified potential reservoirs in the Utica shale, the Beekmantown
Dolomite and the Conasauga formation. The size of the Beekmantown and Conasauga
reservoirs was deemed insignificant for a company the size of ECA and the decline of
oil prices delay any horizontal development in the Utica. 1st NRG along with Keito Gas
will continue with the completion of the Townley well, with each company owning 50%
Ohio Properties
By completing the Townley 1S well, 1st NRG will keep the
development agreement in place with Keito Gas and the ability
to continue development on approximately 7,000 acres in SE
Ohio, including potential horizontal development of the
Utica/Point Pleasant Shale.
“Characterization of rotary sidewall core samples was conducted for the Townley IS well in Morgan County, Ohio
to define basic reservoir, geologic and petrologic properties, and to calibrate petrophysical log interpretations of
reservoir potential and OOIP. Of particular interest are samples collected from the Conasauga formation which
could provide a new resource play. The samples were received at W. D. Von Gonten Laboratories in College Station,
TX on September 26, 2014”
W. D. Von Gonten Laboratories in College Station, TX
The Conasauga formation is a Cambrian part of the Appalachian. The subterranean formation consists
of shales and carbonates over 15,000 feet (4,600 m) thick in certain areas. The Conasauga overlies the
Rome Formation, and in turn is overlain by the Knox Formation. No more than 50 holes have been drilled through
all or part of the rift-sequence in the Rome Trough. Several good gas and oil shows have been reported, the best of
which was an initial potential flow of between 5 and 9 MMCFGPD from the Exxon No. 1 McCoy well in Jackson
County, West Virginia. The well produced briefly before it was abandoned in 1975. The Mavity oil field, discovered
in 1967 in Boyd County, Kentucky, produced about 10,000 BO in 1-1/2 years from a sandstone in the upper part of
the Conasauga Group.
Resource potential: This play has potential for several undiscovered gas fields greater than 6 BCFG. A small oil
field and good gas and oil shows indicate that hydrocarbons are present in the rift sequence. Moreover, numerous
structures in the Rome Trough have not been tested. Several factors may limit the potential of the play: (1)
reservoirs may be widely scattered and of low quality, (2) source beds may be very local and lean, and (3) numerous
episodes of basement-fault reactivation may have permitted much of the gas to escape.
Samples from the Conasauga formation were submitted for X-Ray Diffraction analysis, which aresummarized as follows:
Dolomite is the major mineral component while quartz and feldspars are minor components. Ankerite is presentin small amounts and calcite is only detected in two samples and in small amounts.
The clay fraction is small in all samples, generally less than 10%. Serpentine -a trioctahedral 1:1 clay mineral- isthe main component of the clay fraction. Serpentine is a Mg-rich clay which may have formed diageneticallyfrom the alteration of dolomite.
Serpentine is the only clay mineral above 7322 ft.
Below 7322 ft traces of chlorite and mica (illite) are present as well.
Expandable minerals were not found.
Carbonates Silicates - non clay Clay Minerals Accesory Minerals
Depth (ft) Dolomite Ankerlite Calcite Quartz
K-
Feldspar Serpentine Chlorite Mica/Iilite Pyrite Apalite Siderite Total %