In Tennessee, testing of the gas reservoir interval from 2,523 to 2,528 meters in the John Bowen #2 Test Well, was carried out between November 18, 2008 and December 4, 2008. It was perforated, fracced with nitrogen, acidized and swabbed for three days. The well was subsequently shut in for seven weeks and continually monitored for pressure buildup. The flowback and subsequent monitoring of the well has indicated that the gas zone tested is not commercial. The gas zone will be abandoned and Montello will meet with the other participants to review existing plans for further development on the prospective zones in the five wells that the group has drilled in the area in particular, the Chattanooga Shale.
The Chattanooga Shale Play: is in its infancy with such companies as Atlas Energy (ATN), CNX Gas Company (CNX), Chesapeake Energy (CHK), Range Resources (RRC), GeoMet Inc. (GMET) actively pursuing mineral rights (drilling rights). The methodology is to drill vertical wells followed by new stimulation techniques such as fracturing and horizontal drilling. Given competition amongst participants, there is not a lot of public information available at this time, however, Atlas Energy who has a strong presence, has announced that it has accumulated 105,000 acres in Eastern Tennessee, with a large number of potential horizontal drilling locations and capability for significant production. CNX Gas Corporation (NYSE:CXG), Pittsburgh, PA (July 30, 2008), a leading gas producer by revenue in the Appalachian Basin, in a recent news release confirmed that they have drilled four additional Chattanooga Shale wells after a successful test well. Their release goes on to state as per the link below, that the first two wells are producing with two additional ones in various stages of clean up with "encouraging initial results".
CNX have added an additional 100,000 net acres to bring their total net acreage to 235,000.
The Chattanooga Shale Field is an organic, hydrocarbon rich shale found throughout Eastern Tennessee. It is an extension of the Appalachian Basin Devonian Shale, which is known to most as the Marcellus Shale and is believed to hold rich areas of natural gas. It is located in Eastern Tennessee, Northern Alabama, Southern Kentucky and Northeast Georgia. It is thought to be a source rock for the hydro-carbons produced from many of the conventional reservoirs in Tennessee. The shale thickness can vary to in excess of 200 feet. The following links on the Chattanooga Shale are the source for the overview above. They are independent 3rd party sources, which are believed to be reliable, but cannot be guaranteed for completeness or accuracy.