Black Hills Exploration and Production

BIG SPRINGS GAS STORAGE FACILITY
Deuel County, Nebraska

Big Springs Gas Storage Facility

Deuel County, Nebraska

• Big Springs Gas Storage Area
  • Located ~5 miles northwest of the town of Big Springs
  • 44,672 Gross and net acres m/l within unitized area
  • Additional 16,261 gross acres / 14,614 net acres outside unit area
  • Commercial gas production was established in October, 1950 from the Cretaceous “D” sandstone at a depth of 3,300 feet
  • The area produced 41+ BCF between 10/1950 and 3/1975
  • Gas storage operations began on June 1, 1976
    • Maximum peak design deliverability was 120 MMcfd
    • Average annual gas cycle was 8 Bcf
  • Injection operations ceased in 1995
  • Gas blowdown operations started in 1995 with cumulative production of 40+ Bcf since beginning of blowdown phase
• Current Operations
  • Field shut-in April 2009
  • Average daily production rate Dec. 2008 – 1,000 Mcfpd
  • Unit maintains storage facility status and all leases/storage agreements
  • 30 production/withdrawal wells, 24 observation wells, 9 shut-in
  • Working interest 100%; Net Revenue interest 98.8% in unitized formation
  • 2 commercial disposal wells and 2 disposal facilities
  • Substantial amount of equipment including field gathering systems
  • Surface ownership of compressor station and disposal battery
  • All easements, rights-of-way and land use permits in place
  • 13 Niobrara wells owned and operated by third party – potential additional gas volumes for the gathering system
  • Big Springs Field located within the Niobrara producing area
  • 52 square miles of 3D seismic coverage
  • Friendly regulatory environment
    

NOTE: A Confidentiality Agreement ("CA") must be executed prior to receiving the data package. Please visit our web-site to order this package and download the required CA.