Stratex Oil & Gas Holdings, Inc. (OTC Markets: STTX) has entered into a joint development agreement (JDA) with Eagle Oil & Gas Co. and Eagle Dodge City Partners LP, pursuant to which Stratex may earn up to a 50% working interest (WI) in approximately 35,000 leasehold acres located in Ford County, Kan.
As per the terms of the JDA, Eagle, as operator, will initially drill four wells targeting the Mississippi Lime, which produces locally. It is anticipated that the first such well will be spudded within 90 days. Stratex has agreed to pay 75% of the estimated drilling and completion costs of these 4 initial wells, in return for a 50% WI therein. Subsequently, Stratex may elect to participate in the drilling of additional wells. Provided that the Company makes all required timely payments under the JDA, upon the completion or abandonment of the next six wells, Stratex will receive an assignment of an undivided 25% WI in the aforementioned 35,000 acres. Upon the completion or abandonment of 10 more wells, Stratex will receive an assignment of an additional undivided 25% WI, totaling a 50% WI. Following the drilling of these 20 wells, Stratex will drill future locations with Eagle on a 50/50 "heads up" basis.
Stratex's management believes there exists the opportunity for the drilling for significant additional development on the acreage. To that end, the JDA has also established an area of mutual interest in Ford County, pursuant to which Stratex and Eagle have each agreed to permit the other party to acquire an undivided working interest in new leases.
Stratex is based in Houston.
Recommended Reading
The Secret to Record US Oil Output? Drilling Efficiencies—EIA
2024-03-06 - Advances in horizontal drilling and fracking technologies are yielding more efficient oil wells in the U.S. even as the rig count plummets, the Energy Information Administration reported.
CERAWeek: Gunvor Sees Balanced Oil Market, No Tightness in LNG Supplies
2024-03-18 - The global LNG market is not currently tight, Gunvor Chairman Torbjörn Törnqvist said at CERAWeek, contradicting the view shared earlier in the day by TotalEnergies.
What's Affecting Oil Prices This Week? (March 18, 2024)
2024-03-18 - On average, Stratas Advisors predicts that supply will be at a deficit of 840,000 bbl/d during 2024.
Babcock & Wilcox to Convert Coal Plant to NatGas
2024-03-18 - B&W will convert the plant’s two coal-fired boilers to natural gas by designing and installing burners, air systems, fans and other equipment.
CERAWeek: CEO Patrick Pouyanné Jokes that Texas is TotalEnergies’ ‘El Dorado’
2024-03-19 - TotalEnergies CEO Patrick Pouyanné said during CERAWeek by S&P Global that Texas was important for his company, which he jokingly called the French company’s “El Dorado” due to the state’s love for oil, gas and renewables.