The Devonian Shale is a thick, dark organically rich shale that serves as both a source rock and a reservoir. Generally, the Devonian Shale sequence produces gas almost everywhere it is drilled so that fields initially separated by several miles, tend to grow together as exploration progresses.
The Devonian Shale section within the Company’s properties is one hundred forty (140) to one hundred seventy five (175) feet thick and is encountered at a depth of approximately one thousand three hundred fifty (1350) feet. Production curves from the Devonian Shale in this area decline at a relatively low rate of four percent (4%) per year for thirty (30) years or more. Wells with a producing life in excess of sixty (60) years are still active. The Devonian Shale well quality anticipated within the Properties is in the upper fifty (50) percent of all of the Devonian Shale Wells in Kentucky, based on the Kentucky Geological Survey Graphs presented. This coupled with inexpensive drilling cost makes these areas highly desirable for long- term development of natural gas and natural gas liquids (NGL) production.