Appalachian Energy Corp Headquartered in London, Kentucky and directed by CEO Joel Patton

Appalachian Energy Corp was formed as part of the original acquisition of approximately 50 well sites on 1,600 leased acres in the Devonian Shale formation in Hawkins County, Tennessee.

Subsequent to the acquisition, the Company expended resources to provide scientific data for the field by geological and petroleum engineering reports. These reports, using conservative natural gas prices, indicate a net present valuation of the field on a PV10 basis to be well in excess of $60 million. The Company has successfully drilled several wells to date and will continue expansion of production as quickly and efficiently as possible.

Individual well production estimates extrapolate production to be in the 100 -150 mcf range daily. Pipeline access from several end users cross the field and ample compressor capacity is readily available and in place. Platina’s resident manager of the field estimates that 50 wells can be drilled within 12-18 months. The quality of gas is such that NYMEX pricing or a slight premium is possible.

As development continues in this field, additional economies of scale will lead to the potential of acquiring more acreage in the surrounding area.

A few recent pics from this lease
in Hawkins County, Tennessee

Click here for a much larger map

Flaring a well is one of the final stages prior to being placed online.  This process is done to eliminate the nitrogen that accumulated in the well during the frac job.