Large natural gas field discovered could potentially be a 20 year supply for Huntingburg

Update: Utilities Superintendent Tony Traylor stated the city has had the gas from this field tested independently and it is a very high quality. With the plan to abandon the city’s gas storage field this could be a new source of gas for the city with less liability and cost to the city to operate since it is a private company.

Original: An Oklahoma company announced a large pocket of natural gas has been discovered near Stendal. Courtney Warren is the president of Bateman’s Bay Exploration; he stood before the Huntingburg Common Council on Feb. 23 to inform them of the find and request their consent to study the feasibility of selling the natural gas to the city.

According to Warren the find is somewhat of an aberration for this area as the quality and quantity aren’t normally found in this area of the country. Due to these factors Warren expressed that it was worth laying a line from the field to a gas main that feeds the city located north of Holland about 3 1/2 mile northeast of the field.

Warren was surprised at the quality of the gas and stated it had a low amount of contaminants and could be considered pipeline quality. It may need to be processed for moisture content but he would facilitate that aspect before supplying the city with the gas.

Utility Superintendent Traylor stated he would like to talk with Ron Ragan with Utility Gas Management to work up a contract that is agreeable with the city and Warren. Ragan bargains with the gas suppliers on the city’s behalf.

The city has had contracts with other local gas suppliers in the past, but the suppliers fizzled out due to bad quality or small quantities, but this find seems promising. Warren stated he estimated that the field could hold 2/10 of a billion cubic feet per well for a total of approximately 6/10 of a bcf for the property. “In my mind its commercial if I can get an equitable contract,” Warren stated. “I am hoping for 15 to 20 years (supply).”

Traylor asked the council authority to begin the negotiating processes with Bateman Bay for the gas and the council approved the request unanimously.

Warren explained he became interested in the area after finding that another drilling operation had experienced a blow out in the area. He drilled and tapped into the field and has been testing it since last summer to assess the quality and quantity.

Traylor stated the city could store the gas in the Huntingburg Gas Wells south of the city on a 168 property they lease and he was excited about the amount and quality of the gas.