Petrol signs deal to sell Kansas gas

Allen Baker

Petroleum News contributing writer

Petrol Oil and Gas Inc. has signed a long-term contract to sell natural gas from its Coal Creek project in southeastern Kansas, the company said July 20, with shipments to start within 30 days. Buyer is Big Creek Gas Field Services LLC.

Petrol, based in Las Vegas, has drilled six pilot wells so far on the prospect in Coffey County, and plans to hook them up to the Big Creek sales line shortly. The deal with Big Creek is a multi-year contract, according to Petrol, which didn’t specify the term.

The company has rights to 165,000 acres in southeastern Kansas and southwestern Missouri, and says the area could support 1,700 producing wells.

Petrol, which just got its POIG trading symbol on the OTC Bulletin Board in March, is hoping to start generating some cash flow from its investments in coalbed methane wells.