Ky/Tenn Report

Volume 16, Number 4 MAY 2009

TOGA CONVENTION GROWS DESPITE LOW OIL PRICES - Oil and gas operators and service companies don't appear to be letting low crude oil and natural gas prices slow their planning for the future as more than 140 have signed up to attend the TOGA annual meeting at the Marriott in downtown Knoxville, May 13-15. "We have more than 75 golfers for our Wednesday outing at the Oak Ridge Country club, said TOGA President, Scott Gilbert. The golf outing opens the convention on Wednesday with tee times starting at 7:30 a.m. thorough 9:30 a.m. Wednesday evening there is a welcome reception and the opening of the exhibits which will fill the lobby of the spacious Marriott hotel. Knoxville Mayor and candidate for Governor Bill Haslam is expected to drop by. Thursday is a full day with breakfast, technical sessions, lunch, and more technical sessions. That evening there is a dinner atop the Sunsphere at the World Fair site. The Friday focus is on the business meeting and election of officers. For registration information, go to the TOGA website at www.tennoil.com.

GILBERT LINES UP GREAT SPEAKERS FOR CONVENTION - The Thursday's technical session opens with a presentation entitled, Ten Things Every Oil Company Needs to Know About Patents", Peter L. Brewer, Attorney and Petroleum Engineer, Baker, Donelson, Bearman, Caldwell & Berkowitz, PC Intellectual Property Group, Knoxville. 9:45 a.m. "Oil and Gas Activity in Tennessee During 2008", Ron Zurawski, State Geologist Department of Environment and Conservation, State of Tennessee. Break 10:30 a.m. to 10:45 a.m. 'Integrity Management and Pipeline Pigging" Brad Posner, Open Hole Manager. Superior Well Services. 11:30 a.m. "Polymer Wall", A secondary recovery project in the old Greensburg oilfield (Corniferous) in Central Kentucky, Scott Hess, Geologist, Greensburg Oil Co. Lunch from 12:15 p.m. to 1:30 p.m. 1:30 p.m.
"Chattanooga Revisited- How horizontal drilling has breathed new life into this Devonian Shale play" J. Kevin Flavin, Geologist, CNX Gas. 2:15 p.m. "ABC's of Horizontal Shale Drilling in Tennessee- a discussion of the different options in drilling, completion, well design, and well location". Scott Gilbert, VP of Exploration, Vinland Energy, Oak Ridge, Tennessee

MILLER MERGES IN KTO, ETC, ANNOUNCES PROGRAMS - Miller Petroleum announced in early April it had signed a letter of intent to merge Ky-Tenn Oil, Inc. (KTO) and East Tennessee Consultants into Miller. Miller CEO Scott Boruff also announced that under the name of Miller Energy Resources LLC (OTC:BB) the firm announced a $25 million drilling program that consists of up to 16 horizontal wells and 14 vertical wells to test the Chattanooga Shale and shallower big lime and Fort Payne Formation. The public firm also announced a $20 million acquisition and development program. Funding for both programs is via private placement memorandum. The managing Broker Dealer is Empire Securities Corp. Universal City, California.

ATLAS MERGES TO EXPLOIT MARCELLUS - Atlas America, Inc. and Atlas Energy Resources have announced a merger play to enhance the its position as a player in the Marcellus Shale, a rock formation believed to contain one of the nation's largest reserves of natural gas. The plan calls for Atlas America Energy Resources (NYSE:ATN) to become a wholly owned subsidiary of Atlas America (NDASDAQ:ATLS) and for Atlas America to be renamed Atlas Energy, Inc.

CNX GAS CONTINUES INTO MARCELLUS SHALE - CNX Gas (NYSE:CXG),in an April news release says it has raised its production gui8dence for 2009 due to better than expected results in the Marcellus Shale. The company raised guidance from 85-87 Bcf of natural gas for 21009, up from 76.6 Bcf of production in 2008. The company has now drilled five horizontal wells in the Marcellus and has reported aw 3.14 MMcf per day average initial production rate April 19.

KENTUCKY CONVENTION, JUNE 10-12 - The Kentucky Oil & Gas Association will hold its 73rd annual meeting, June 10-12, 2009 at the Marriott Griffin Gate, Lexington, Ky. For more information, go to the association's website at www.kyoilgas.org.

LANDMAN SEEKS ASSIGNMENT - Arnold Conant, an experienced landman is looking for work in Tennessee. Contact him at 304-834-4949.

KENTUCKY SETS CO2 PROJECT - Projects to sequester carbon dioxide and test its use in enhanced oil recovery are underway in western Kentucky, according to the Oil & Gas Journal. As much as 8,000 tons of CO2 is to be injected for six months into the Mississippian Jackson sandstone at 1,870 ft. in a well in Sugar Creek field in Hopkins County. Meanwhile the Kentucky Geological Survey spud a well in Hancock County with a projected td of 8,300 ft. Later CO2 is to be injected to test the capacity of various formations to serve as a permanent storage space.

TENNESSEE APRIL PERMITS: Campbell County - CNX Gas Company, LLC, Begley Properties LLC, 5560', Ketchen/ Hancock County - Ryholland Fielder, Inc., Ronald Cantarell #5, 7000', Swan Island/ Morgan County - Eastern Energy Resources, Inc., John Diden Unit #2, 5000', Rugby/ Overton County - Able Oil Company, Inc., Barry Johnson #4, 2000', Knox; Outdoor Resources, Inc., Nelson-Parrigan #2, 2000', Okalona; National Energy, Wilborn Wright Trust #8, 2000', Alpine; McDonald Oil Co., Roger McDonald 7A, 2000', Alpine/

KENTUCKY APRIL PERMITS: Barren County - Jeff & Carlton Botts, Jeff & Carlton Botts, #B1, Leipers Ls/ Clinton County - G & R Oil, Enid Wallace, #12, Knox Gp; Burke-Turner Adventures, LLC, Phyllis, Danny & Brandy Lowhorn, #1, Knox Gp; Steve Burchett Oil Co., Mike Owens, #0-1, Robert Boles, #BB1, John Poore, TS1, Knox Gp; Hornet Oil & Gas Corporation, Allen Flowers, #1, Knox Gp; Allen Page, Jimmy Riddle, #1, Murfreesboro; Rick-Rod Oil Company, Inc., Rocky Beaty, #10R, Knox Gp/ Harlan County - Daugherty Pet, Inc., E.T Creech Heirs, DPI 1242, Huron Mbr, Ohio Sh/ Letcher County - Quality Natural Gas, LLC, Nolan Kentucky Properties, LLC, #1785, Devonian, Lower Part; Equitable Production Company, Equitable Production Company, #567653, #567652, Huron Mbr, Ohio Sh, #567651, #567654, Cleveland Mbr, Ohio Sh; EQT Production Company, Equitable Production Company, #569285, #569251, Huron Mbr, Ohio Sh, #569286, #569252, #568217, Cleveland Mbr, Ohio Sh; Daugherty Pet, Inc., Kentucky River Properties, LLC, DPI-1265, Huron Mbr, Ohio Sh

The Ky/Tenn Report is published monthly and distributed at no cost to oil and gas operators in Tennessee and Southern Kentucky. It is owned and operated by W.D. Goodwin, Inc., The editor is Bill Goodwin, e-mail: tmdbill@aol.com it is the official publication of the Tennessee Oil & Gas Association, 750 Old Hickory Blvd, #150-2, Brentwood, TN, 37027. Phone 615.371.6137, Fax 615.599-1806. Web site: www.tennoil.com.

KY/TENN REPORT
750 OLD HICKORY BLVD, #150-2
BRENTWOOD, TN 37027