Paradox Basin Shale Investment Opportunity
DJ Simmons is seeking a partner or partners to develop an extensive holding of prospective shale-gas acreage in the Paradox Basin of Southwestern Colorado and Eastern Utah. The prospect area is divided into 3 blocks, as shown on Exhibit A. The partner(s) can choose to participate in all, one, or two of the blocks.
The company holds an acreage position of approximately 40,000 net acres in the Blanding Sub-basin of the Eastern Paradox Basin. Organically rich, gassy Pennsylvanian shales of the Hovenweep and Gothic zones underlie the area. Combined thicknesses of these shales range from 50 to 170 feet and average well over 100 feet. Based on preliminary data from Simmons’ well program and from public information, Simmons estimates the acreage to contain approximately 1.6 TCF of original gas in place. Recoverable gas is estimated to be in the range of 0.86 to 1 TCF with full development.
DJ Simmons believes that current market conditions present an excellent opportunity to create and begin a development plan to take advantage of low vendor pricing and lower acreage costs. Potential deal terms are flexible. Simmons generally seeks a partner who will contribute the majority of funding for the project while Simmons puts up its acreage and performs the work. The company is open to negotiations which meet the two-fold objectives of being fair to all and the commercial development of the resource.
If you’re interested in this or other prospect potentials, please contact:
John Byrom, President and CEO