Dallas, (ANTARA News/PRNewswire-AsiaNet) - Prime Income Asset Management today announced that SH Energy and Chemical, Ltd., based in Seoul, South Korea has acquired the mineral rights to 3,000 acres in Van Buren County, Arkansas from Source Rock Energy of Arkansas, 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 throughout Europe, Asia and Russia. The Company's manufacturing technology for EPS (expandable polystyrene) resin and acrylonitrile bultadiene styrene (ABS) resin has been exported to China, India and Belgium. 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 of Arkansas 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 of Arkansas, 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 a Dallas-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 throughout the 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
CONTACT: Ann Wills of Keating Magee Public Relations,
+1-504-299-7168,
awills@keatingmagee.com,
for Prime Income Asset Management;
or
Chris Childress
of Prime Income Asset Management,
+1-469-522-4275,
chris.childress@primeasset.com
Web site: http://www.primeasset.com
http://www.sh-chemical.com/eng/company.html
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 throughout Europe, Asia and Russia. The Company's manufacturing technology for EPS (expandable polystyrene) resin and acrylonitrile bultadiene styrene (ABS) resin has been exported to China, India and Belgium. 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 of Arkansas 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 of Arkansas, 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 a Dallas-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 throughout the 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
CONTACT: Ann Wills of Keating Magee Public Relations,
+1-504-299-7168,
awills@keatingmagee.com,
for Prime Income Asset Management;
or
Chris Childress
of Prime Income Asset Management,
+1-469-522-4275,
chris.childress@primeasset.com
Web site: http://www.primeasset.com
http://www.sh-chemical.com/eng/company.html
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