SOURCE: Energy Revenue America, Inc
DALLAS, TX--(Marketwired - Jan 16, 2014) - Energy Revenue America, Inc. (PINKSHEETS: ERAO), a firm focused on the acquisition, development and exploration of Coal Bed Methane (CBM) natural gas, is pleased to provide a production update on the Company's 3,100 acres in Nowata County, Oklahoma. After announcing the reopening of 10 existing wells last week, the company has now secures a contract to transport natural gas for a 3rd party utilizing their 65 mile pipeline.
This is the second leg of a 2014 strategy that Energy Revenue America, Inc. has developed to (1) re-open 30 existing wells, (2) transport natural gas for others and (3) drill new wells. This is a significant milestone and moves Energy Revenue America, Inc. into a company producing revenue from multiple sources and the establishment of a strong base to begin 2014.
"Utilizing our 65 mile pipeline to haul gas for a third party has always been a significant part of our strategic plan," stated Charles H. Havens, ERA's Chairman and Chief Operating Officer. "Our team moved quickly to bury the feeder pipe to connect to the 3rd party wells and our customer was able to connect faster than we had planned. We expect additional wells will be added in the next several months from this same customer."
Energy Revenue America is drilling for natural gas in the Cherokee Basin in Oklahoma which is located in the Mid-Continent region in southern Kansas, northern Oklahoma, and western Missouri. The Cherokee Basin is the eighth largest coalbed methane basin in the United States and covers approximately 26,500 square miles.
Over the next 5 years Energy Revenue America expects to drill in excess of 300 wells in the Cherokee Basin. For every well completed, the reserve value for future gas from the wells becomes a value to ERA as future income. ERA estimates that gas reserves at the end of year 2 will exceed $80M and at the end of year 3 over $150M.
About Energy Revenue America, Inc.
Energy Revenue America, Inc. is focused on the acquisition, development and exploration of unconventional natural gas projects, primarily Coal Bed Methane (CBM) and seeks to acquire and develop properties with significant undeveloped potential and apply technical and operating expertise to maximize the value of these resources.
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as INCL or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.