Aug. 8 at 3:50 PM
$MNR call revealed some interesting details about IKAV acquisition I had not heard/seen previously. In addition to Mancos Shale, the San Juan basin has another promising geologic feature Tom described on the call, and that is Fruitland Coal Formation. While the returns are about the same as what was described for Mancos Shale (>50%), the well costs are much lower (
$3 million).
USGS estimates Fruitland formation in the San Juan Basin has 39 TCF of potential gas.
https://pubs.usgs.gov/fs/2020/3047/fs20203047.pdf
It creates a menu of opportunities that enables Mach to carefully match capital commitments to its anticipated funding. Have more to spend, go big and drill a
$14-
$15 million well in the shale. Have less to spend, then target Fruitland Coal.
