1 According to IHS Inc., a shallow completion by Grayson Hill Farms Inc. produced 80,000 cu. ft. of gas from #9 Brushy in Saline Coal Gas Field. Located in Section 28-8s-5e in Saline County near Raleigh, Ill., the well was drilled to 295 ft. and produced coalbed methane from an openhole interval in Herrin coal between 288-295 ft. Additional information about the well is not available. Grayson Hill Farms is headquartered in Eldorado, Ill.

2 A drilling log confirmed a 140-ft. shale formation at Kentucky USA Energy’s #1 Swinney well in Kirkmansville Quad, Muhlenberg County, western Kentucky. Drilled to a total depth of 3,460 ft., the New Albany shale producer encountered a strong showing of gas to surface. An additional gas zone which was not in the original reserves study, the Dutch Creek formation, was also encountered in the well between 2,582-94 ft. Initial open-flow tests from the Dutch Creek formation show an approximate potential flow of more than 150,000 cu. ft. of gas per day. Additional details are not available. Kentucky USA Energy’s headquarters are located in London, Ky.

3 Adventure Energy Inc. has spudded #1 JL Blaydes in Metcalfe County, Ky., where the company has 160 acres of leased mineral rights. The well is northeast of Edmonton in East Fork Quad, and projected total depth is 2,000 ft. to the Knox formation. Adventure has a 100% working interest in an additional four wells planned for the initial stage of its drilling program.

Recently, the company also announced completion of its #1 Larry Hardin in Monroe County, Ky., that targeted Corniferous in Sulphur Lick Field at 350-450 ft. and the Knox group at 600-800 ft., but additional completion details are currently not available. The company owns 40% working interest in the well and anticipates first production shortly. Adventure Energy Inc. is based in St. Petersburg, Fla.

4 Results were released for the May 2009 oil and gas lease sale held by the Michigan Department of Natural Resources (DNR) in Lansing, Mich. The sale drew high bids totaling $648,463 for 463 tracts covering 32,038.93 acres, an average of $20.24 an acre. The sale offering was comprised of 1,166 parcels encompassing 97,056.59 acres in 25 counties. Acreage in Lenawee County drew the top bids totaling $158,425 for 688.73 acres. Montmorency County drew high bids totaling $80,561 for 1,295.79 acres. Outside of Lenawee and Montmorency counties, the sale offerings largely went for the minimum bid of $13 per acre. The most successful bidder at the sale was Traverse City-based West Bay Explo­ration Co. It paid $314,310.12 in bonus and rental for 12,161.01 acres. Traverse City independent Savoy Energy LP, acquired 400.92 acres for $71,251.84 in bonus and rental. The sale’s top per-acre bid of $490 was made by West Bay for Tract 821, a 67-acre lease within the northwest quarter of Section 6-5s-3e, Lenawee County.

5 Pruet Production Co. of Jackson, Miss., has completed a Smackover oil well in the north-central portion of southern Alabama’s Escambia County. The operator’s #1 Kelly 12-15 was tested flowing 47.8-degree-gravity crude at a daily rate of 120 bbl., with 249,000 cu. ft. of gas and 2 bbl. of water per day. Flowing tubing pressure was gauged at 366 psi on a 13/64-in. choke. The 13,902-ft. well was tested through acid-treated perforations in Smackover at 13,720-50 ft. Pruet’s directional discovery was drilled from a surface location in Section 12 3n-8e, about 12 miles south of the town of Repton.

6 Midroc Operating Co., based in Dallas, has completed another Smackover well as part of Little Cedar Creek Field in the southern portion of Alabama’s Conecuh County. The #10 Kendall Lands 24 was tested flowing 91 bbl. of 45-degree crude, 130,000 cu. ft. of casinghead gas and 8 bbl. of water per day through perforations at 11,414-34 ft. Using a 30/64-in. choke, flowing tubing pressure was gauged at 52 psi. Located in Section 24-4n-12e, the new producer was drilled to a total depth of 11,700 ft. and was plugged back to 11,547 ft. Brought online in 1994, Little Cedar Creek Field has yielded from Smackover a cumulative 6.92 million bbl. of oil, 5.83 billion cu. ft. of gas and 51,108 bbl. of water through September 2008.

7 In Tallahassee, a Florida state legislative committee has passed a measure to open up the state’s offshore Gulf of Mexico coastline to exploration drilling. The House Policy Council voted 17-6 to approve a bill that opens Florida waters to exploration. E&P Daily reported that the measure would lift Florida’s ban on oil drilling in state waters and replace it with a process to let the governor and Florida Cabinet allow exploration in the Gulf of Mexico between three and 10 miles offshore. The legislative measure did not have a state Senate companion but the governor of Florida is apparently in favor.

8 Lexington, Ky.-based NGAS Resources Inc. has acquired interests in the southern portion of the Appalachian Basin from Chesapeake Energy Corp., via a farmout in Kentucky. The acquired assets include 56,000 gross undeveloped acres (42,000 net) contiguous to the Amvest portion of the company’s Stone Mountain Field in Letcher and Harlan counties. Under the no-cash deal, NGAS has committed to drilling four wells annually under the farmout, with an additional commitment to drill six vertical Devonian shale wells by the beginning of June 2009. Royalty owner Penn Virginia Operating Co. LLC and Chesapeake each have participation rights for up to 25% of working interests in future wells on the acreage. Chesapeake will continue to own more than 100 producing wells and a gathering system that connects to NGAS’ gathering system.

9 Stalkner Energy Corp. of Glenville, W.Va., reported 589,000 cu. ft. of gas per day from its #S-487-2 Haymond. The new producer is located in Banks District, Rock Cave Quad, Upshur County, near Buckhannon, W.Va. After perforation, acidizing, and fracturing, commingled production is from perforations in Bayard/Balltown at 2,763-3,235 ft., Riley at 3,511-49 ft., and Benson at 3,959 ft.

10 PC Exploration Inc., with headquarters in Warrendale, Pa., reports production from a gas wildcat. The vertically drilled #5 Burns-T Carmal is located in Section 5, Dayton Quad, Porter Township, on a 120-acre lease in Allegheny County, Pa. Drilled to 3,694 ft., the well was perforated in Fifth sand/Fifth stray sand at 1,892-1,939 ft.; Bayard, 1,969-84 ft.; Warren, 2,476-80 ft.; Speechley, 2,681-2,710 ft.; Tiona/ Balltown, 2,803-74 ft.; and Bradford, 3,243-92 ft. Initial potential was 269,000 cu. ft. per day from the commingled zones, according to IHS Inc.

11 According to Norse Energy Corp., its horizontal drilling program in the Herki­mer trend in central New York State could hold about 0.5 trillion cu. ft. of gas. The company has 250 seismically identified locations in the Herkimer formation (Silurian sandstone) on the company’s 130,000-acre leasehold position in Madison and Chenango counties. Two recent discoveries have had initial production rates averaging approximately 2.5 million cu. ft. per day. Norse Energy has drilled five producing horizontal wells through the first half of 2009, and plans to drill 25 horizontal wells in the area by year-end. To accommodate anticipated gas production, the company indicates that it will upgrade metering stations. Norse has 18 wells drilled throughout central New York that are currently awaiting pipeline connection. Norse Energy headquarters are located in Oslo.