Palo Duro Basin, Texas Prospect
The Palo Duro Basin is located in west Texas (actually northwest
Texas near the panhandle area), roughly 260 miles northwest
of the Fort Worth Basin which is home to the Barnett Shale
play, currently the largest natural gas play in the State.
The formation in the Palo Duro Basin is an unconventional natural
gas play targeting Pennsylvanian-aged shales that exist at
depths between 7,000 and 10,500 feet.
The Palo Duro Basin has been compared in superiority to the
Barnett Shale by investment bank analysts such as Morgan Stanley.
Platina Energy has strategic lease acreage in this Texas geological
formation which it believes to be significant. The possible reserves
on this prospect could potentially be worth more than all of
the other assets of the Company combined.
During 2007, consultants were engaged to estimate potential
reserve holdings in the Palo Duro Basin. Much of the recent field
data still remains inconclusive, therefore the property awaits
additional information from surrounding activity such that management
can fashion a plan for maximizing the asset and identifying its
true value. Rather than provide speculative reports and unsubstantiated
information at this time, the Company has elected to allow its
neighbors to explore the area thereby allowing Platina better
access to data to properly forecast the potential reserves held
by the Platina lease.
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