VENTURA, Calif.--(BUSINESS WIRE)--Paramount Energy Group is excited to announce the Paramount Gammon Oil Development, LP, an established oil field project using Radial Jet Enhancement (RJE), a horizontal drilling technology. This partnership was organized to further develop the Gammon lease acreage, situated in the Donelson West Field in Cowley County, Kansas.
With the successful drilling and positive tests for oil in the Gammon #20-1 and the Gammon #20-2 wells in Q2 2011, Paramount Energy Group has entered into a joint venture agreement with Fossil Energy Corp to further develop the Gammon lease. The Paramount Gammon Oil Development, LP plans the drilling of 4 new wells in an effort to further extract proven oil reserves and will drill and complete this oil reservoir utilizing Horizontal Radial Jet Enhancement Technology."Leasing and drilling activity has intensified dramatically in Cowley County over the past year," said John M. Olivia, President of Paramount Energy Group and the Managing General Partner of the Paramount Gammon Oil Development, LP.
"Major and mid-sized oil companies are acquiring acreage in mature fields at a record pace due to the advent of new technology. According to the Cowley County register of deeds, in May 2011, 116 leases were filed, up from only 7 leases being recorded in April of 2010. These companies are drilling horizontally in reservoirs similar to the formations we have on several of our leases.
"As a matter of fact," explained Olivia, "there are three horizontal wells currently being drilled only 4 miles away. Horizontal drilling has picked up considerably in the area and positive results are being witnessed in both new and existing wells. We are expanding our current acreage positions to include these areas in order to be a part of this success."
Paramount Energy Group has contracted with Well Enhancement Services (WES) of Hays, KS, to implement their horizontal completion technique. According to WES, RJE has been proven to enhance production 3 to 10 fold and is less costly than most conventional technologies.
RJE is a method of jet drilling horizontal laterals using a high-pressure water jet system. Oil reserves that otherwise would have remained beyond the reach of conventional technologies can now be recovered efficiently and economically. In some cases, production recoveries are to a point equal to or exceed those of the well’s initial production.
About Paramount Energy Group
Paramount Energy Group, headquartered in Ventura, CA, is an oil and natural gas development company founded in 2011 by President John M. Olivia. The company's current development acreage is located in southeastern Kansas, with operations being supervised by BC Oil Field Services. BC maintains Paramount's properties by owning and operating a completion rig, bulldozers, trenchers and gravel/water trucks that provide the ability to build and maintain infrastructure.