DRILLING

First Appalachian well drilled: Emerald

EMERALD Oil and Gas says operator P&J Resources spudded the first well in the Appalachian gas development project, in eastern Kentucky and West Virginia, yesterday.

The well, Myrtle Crum-4, will be drilled to a total depth of about 5500 feet and test several productive formations including the Big Six sandstone.

P&J and Emerald announced the 90,000-acre Appalachian gas project last month.

In other company news, Emerald has completed the acquisition of an 80% working interest in five existing wells in Kentucky.

The wells JM-1 and 2, TK-1, DC-1 and TIM-2 were all successfully drilled in September 2006 but have not been hooked up to production facilities, pending completion of gathering lines and infrastructure.

Emerald said it intended to put the wells on production and then assess whether to fracture stimulate the wells, based on the production data.

P&J is working to hook up the wells, the company added.

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