Breitling Energy Corp. (OTC: BECC) entered a farm-out agreement with Steller Energy & Investment Corp. to explore and develop nearly 3,680 acres in Sterling County, Texas, the company said Feb. 20. Steller Energy had previously entered into an exploration and development agreement for the same acreage, with Clayton Williams Energy Inc. (NYSE: CWEI), Breitling noted.
Under the farm-out, Breitling will follow Steller Energy’s obligations, the company added, noting that it will earn a 100% working interest in each well drilled, along with surrounding acreage. If at least eight wells are drilled, full working interest in the entire acreage will be retained, Breitling said.
The acreage, in the county’s northwest, has multiple pay zones, the company said. Wells drilled in or near it have produced from the Lower Wolfcamp Lime, Canyon Sand, Mississippi Chert and Lime, Fusselman Lime, Montoya Lime and Ellenburger Dolomite areas, the company added.
Chris Faulkner, Breitling’s CEO, said "This is a great addition to the growing reserves of Breitling, and an overall fit to our business plan."
"This Permian Basin acreage should allow Breitling to continue with its goal of adding additional liquids production to enhance its stakeholder value," he added.
Recommended Reading
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
NOV Announces $1B Repurchase Program, Ups Dividend
2024-04-26 - NOV expects to increase its quarterly cash dividend on its common stock by 50% to $0.075 per share from $0.05 per share.
Initiative Equity Partners Acquires Equity in Renewable Firm ArtIn Energy
2024-04-26 - Initiative Equity Partners is taking steps to accelerate deployment of renewable energy globally, including in North America.
Repsol to Drop Marcellus Rig in June
2024-04-26 - Spain’s Repsol plans to drop its Marcellus Shale rig in June and reduce capex in the play due to the current U.S. gas price environment, CEO Josu Jon Imaz told analysts during a quarterly webcast.
Ithaca Deal ‘Ticks All the Boxes,’ Eni’s CFO Says
2024-04-26 - Eni’s deal to acquire Ithaca Energy marks a “strategic move to significantly strengthen its presence” on the U.K. Continental Shelf and “ticks all of the boxes” for the Italian energy company.