The company today said its Ridge Runner 2-19 well at its Clear Creek project has been drilled to a planned total depth and has been cased awaiting completion.
Marion said the well revealed “excellent gas shows” during drilling and the rig has remained on the same pad to drill the Ridge Runner 11-17, which has been spudded.
The Ridge Runner 11-20 is still being tested, it said.
The company plans to move a second drilling rig into Clear Creek, where it intends to begin drilling the ASD 3017 this week, followed by the ASD 6-17. Both wells will target the Ferron reservoir.
The company last week revealed plans to boost its working interest in the Clear Creek from 67.5% to 92.5%, after agreeing to acquire an additional 25% stake in the project from partner Mid-Power Resources.
Under the deal, Mid-Power will no longer have a direct operating interest in Clear Creek but will retain a 12.5% net profit interest, subject to several conditions.
The new agreement will terminate Marion’s original farm-in obligations, specifically its commitment to spend $US20 million ($A27 million) on operations to earn its interest and free-carrying Mid-Power for $5 million in capital expenditure over the next four years.
The company said three new wells at its Helper project have been drilled and completed.
The three wells – the Cordingly Canyon 11-1, 15-5 and 10-1 wells along with the 15-2 –that are either being tested or completed, have also exhibited “excellent” gas shows when being drilled, Marion said.
After the testing of the four wells, the company, which has a 48.75% stake in the project, plans to restart its drilling program at Helper through the winter months.
Marion said it had to alter its drilling plan at its Jester-Bloomington project in Oklahoma from a horizontal to high angle well after drilling difficulties.
The well, cased and awaiting completion, revealed good gas shows during drilling, it said.
“The company has also increased its acreage position in this burgeoning play to approximately 7000 gross acres and is continuing to add to this position,” Marion said.
Meanwhile, the company said it had signed a commitment letter with lender Fortis Capital for a three-year $US20 million senior secured revolving credit facility.
Marion said loan documentation is being finalised and on closing, the full amount of the facility will be available to the company.