The energy holding company Caprock Oil Inc. (OTC: ROKO) entered a participation agreement with Rio Bravo Energy Partners LLC for working interest in the Goldman Field development project, the company said July 17.

Caprock acquired a 20% working interest from Rio Bravo after it issued 120,000 restricted common shares, the company said. Caprock also assumed 20% of the costs for the drilling of an initial well on the field in Edwards County, Texas. Drilling should begin in this year’s third quarter, Caprock noted.

The Goldman Field’s sand reservoirs hold up to 800 feet of net pay, the company said, noting that the net pay is in three parts of the Holman Formation.

"We are delighted to align Caprock with an experienced and innovative operator such as Rio Bravo in pursuing this exciting new approach to a high potential gas resource play,” said Steven Mikel, president and CEO of Caprock.

Caprock Oil Inc. is based in Houston.

Privately held Rio Bravo Partners LLC is also based in Houston.