Published:
SH Energy and Chemical, Ltd. and Source Rock Energy of Arkansas, LLC Enter Into a Transaction to Drill the Fayetteville Shale Play in Arkansas
DALLAS, June 30 /PRNewswire/ -- Prime Income Asset Management today
announced that SH Energy and Chemical, Ltd., based inSeoul, South Korea has
acquired the mineral rights to 3,000 acres inVan Buren County, Arkansas from
Source Rock Energy ofArkansas, LLC to begin drilling the Fayetteville Shale.
The first drilling project will involve a proposed two-well simulfrac with
approximately 3,000-foot laterals at an anticipated depth of 1,700 feet each.
The drill pad construction is complete for the first well and a proposed start
date is scheduled for on or about June 30, 2008. Drill pad construction is
also currently underway for the second well. Source Rock Energy's parent
company Eurenergy Resources Corporation and SH Energy and Chemical have formed
SH Exploration to be the operator for the development of the 3,000 acres. SH
Exploration is 51% owned by SH Energy and Chemical, Ltd. and 49% owned by
Eurenergy Resources Corporation.
Founded in 1958, SH Energy and Chemical, Ltd. is a Korean company engaged
in the production of various grades of resins. During its 50 year history, it
has produced over 60 petrochemical products, which have been exported
throughoutEurope,Asia andRussia. The Company's manufacturing technology for
EPS (expandable polystyrene) resin and acrylonitrile bultadiene styrene (ABS)
resin has been exported toChina,India andBelgium. During the year ending
December 31, 2007, the sale of EPS resins accounted for approximately 99% of
the Company's total revenue, making it one of the most successful
petrochemical products companies in the world.
The Fayetteville Shale is an unconventional gas reservoir located within
the boundaries of the Arkoma Basin, ranging in thickness from 150 to 300 feet
and ranging in depth from 1,200 to 5,000 feet with a Total Organic Content
(TCO) ratio of 4.6%.
According to Hwang Gyu Uk, CEO of SH Energy and Chemical, Ltd., "Combining
the petrochemical innovations of SH Energy and Chemical with the expertise of
technical advisor Source Rock Energy ofArkansas should undoubtedly create a
solid opportunity for enhancing shareholder value as SH Energy and Chemical
expands its investment in the energy sector. We are excited about this venture
with Source Rock Energy and participating with them in the Arkansas Shale
play."
Source Rock Energy ofArkansas, LLC is wholly owned by Eurenergy Resources
Corporation, an affiliate of Prime Income Asset Management, LLC
(http://www.primeasset.com). Affiliated companies also under management by
Prime include American Realty Investors, Inc. (NYSE: ARL), Transcontinental
Realty Investors, Inc. (NYSE: TCI).
Prime is aDallas-based real estate management company, which owns,
develops and manages over $2.5 billion dollars of commercial real estate for
public and private real estate entities throughoutthe United States, as well
as various other oil and gas subsidiaries.
For further information on SH Energy and Chemical, Ltd., please visit
http:/www.sh-chemical.com/eng/company.html.
SOURCE Prime Income Asset Management
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,OIL,CHM,TNM,TX-Prime-Income-Manag
_ _Is your favorite bookmark site missing?
Ask for it.
Search News
Daily News
