Admiral Bay Resources acquires 90% stake in Kansas gas project

Ray Tyson

Petroleum News Houston correspondent

Toronto-based Admiral Bay Resources said Feb. 23 that its U.S. subsidiary has taken a 90 percent working interest in the Swordfish gas project located in Chautauqua County, Kan.

The project, situated on 35,000 contiguous acres, was acquired from M & S Methane Development LLC of Denver, Colo., and lies in the heart of the prolific Cherokee Basin and on the edge of the growing coalbed methane development in southeastern Kansas and northeastern Kansas, Admiral Bay said.

There are two shut-in wells on the property capable of producing 200 thousand cubic feet of gas per day, and the wells will be reactivated shortly, the company said, adding Admiral Bay plans to begin developing the acreage as both a conventional oil and gas and unconventional shale and coal gas project. The company said it intends to drill up to five additional wells before the end of June.