Houston American Energy Corp. will acquire a 25% working interest in two lease blocks on about 800 acres in the Delaware Basin from Founders Oil & Gas III LLC through a participation agreement, which it entered, the company said Jan. 4.
The acreage is in Reeves County, Texas, with a per-net mineral acre price of $5,500 each, bringing the total purchase price to $1.1 million.
Founders will operate the acreage and drill an initial well, expected to begin by July 1.
John P. Boylan, Houston American’s CEO and president, said the company will initially target the Wolfcamp Shale and Bone Springs formations, known as the Wolfbone play.
The transaction is expected to close during mid-January, subject to conditions including Houston American's ability to secure necessary financing.
Houston American Energy Corp. is based in Houston.
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