E&P company Laredo Oil announced March 14 that Texakoma Exploration and Production exercised its option to drill the next eight wells under its agreement with Laredo subsidiary Lustre Oil and Erehwon Oil & Gas.
The agreement would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
After the eight wells are developed, Texakoma can continue to drill additional wells within the contract area with the working and net revenue interests for each well being on a 50/50 basis between Texakoma on one hand and Lustre and Erehwon on the other.
“If the additional eight wells being drilled, together with the two initial wells already drilled and completed, perform as expected, we will have the opportunity to develop many more wells with Texakoma consistent with our mutual long-term asset building plan,” said Mark See, chairman and CEO of Laredo.
RELATED
Recommended Reading
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.