1st NRG Corp. (OTCBB: FNRC.PK) is an exploration and production company engaged in the development of natural gas producing properties in the Powder River Basin of Wyoming. 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 2,821 undeveloped acres. We acquired our interest in October 2010 and the 42 wells which currently make up the field are shut in. The undeveloped acreage could be permitted for 35 locations which are characterized by what we believe to be low geologic risk, a repeatable development opportunity and are offsetting wells which all demonstrated developed coal seams in the Schwartz, Anderson, Canyon, Cook and Wall formations.
The targeted coal seams in the Powder River Basin are part of the Tongue River Member of the Fort Union formation and have been extensively mapped as natural resource developments and exploration have occurred throughout the region. Industry data from many wellbores drilled by ourselves and others, allow the Company to estimate the extent, thickness, gas saturation, formation pressure and relative permeability of the coal seams. This reduces (but does not entirely eliminate) the risk of drilling unproductive wells. Our development has encountered developed coal seams in the Schwartz, Anderson, Canyon, Cook and Wall formations where the currently producing wells are commingling gas produced from three coals - the upper and lower Schwartz, and the Anderson. The developed coal seams in the Canyon, Cook and Wall formations remain behind pipe and available for future development.
The Company has also expanded its activities into Ohio participating in a development of acreage encompassing approximately 7,000 acres. A vertical test well was drilled, logged, cored and cased to a depth of approximately 7,620 feet and testing of the well, the results of a diagnostic fracture injection test and analysis of the cores, proved inconclusive in the Utica Shale. Because of the inconclusive results and the decline in oil prices the well was re-assigned back to 1st NRG and its partner. We now hold a 35% working interest in the well and are proceeding in two zones of interest, the Conasauga formation and the Beekmantown Dolomite. The well is being flow tested in the Conasauga formation through the current perforations.