Nitro Petroleum Inc. focuses its efforts on exploring and developing oil and natural gas properties in the United States. The Company has interests in three prospects covering 240 acres (the East Moreland, West Moreland, and Farley leases) in Nowata County, Oklahoma. Additionally, Nitro Petroleum is developing a Barnett Shale joint venture project covering 7,000 mineral acres. This project contains 24 operating wells that produce approximately 400 barrels of oil and 2.5 million cubic feet of gas per day.
Nitro Petroleum pursues joint venture projects in highly productive areas and redevelops mature fields through the use of innovative technologies. The company leverages modern, sophisticated remediation and extraction techniques as well as its large inventory of 3-D seismic data to drill horizontal wells more precisely inside targeted shale formations, avoiding various underground structural chalÂ¬lenges such as karsts and faults.
In 2008, Nitro Petroleum increased its oil and gas by 661%. The company also formed a joint venture with Toro Ventures Inc. to develop the Crown lease project in Pottawatomie County, Oklahoma. Nitro Petroleum has completed remedial re-works on Crown #1 and #3 wells and is producing natural gas in pay quantities. The company recently signed a second joint-venture contract with Toro for the Quinlan lease project.
Beacon Equity estimates Nitro Petroleum's reserves total at 110 BCF of natural gas, which is worth around $500 million at today's relatively low natural gas prices. In the 16-page report, the research bureau stated, Recognizing the huge reserve potential of both the Barnet Shale and the Company's Oklahoma properties as well as the progress the Company has made to-date in negotiating joint ventures and reworking existing wells, we are initiating coverage of NTRO with a Speculative Buy rating and a $0.16 price target.