Petrichor Energy Inc. (Toronto Venture: PTP) has entered into an amended and restated participation agreement with BlakEnergy Ltd. to acquire a 50% working interest in certain acreage (covering 11,895.65 acres) located in Young County and Jack County, Texas, known as the Marble Falls prospect.
Petrichor's participation in the prospect will be a 50% cost-bearing working interest through the first 10 wells, delivering the company a net revenue interest of approximately 37.5%. The company's working interest shall be burdened by a 5% carried working interest through the tanks in favor of the vendor and/or its assigns on the first 10 wells drilled in the prospect. Beginning with the 11th well, the carried working interest will convert to a cost-bearing 5% working interest, and all working interest owners will then participate on a full cost basis. As clarification, Petrichor's interest beginning with the 11th well will be a 45% working interest and a 33.75% net revenue interest.
In consideration for its 50% interest, Petrichor must pay 50% of the purchase price of $650 to $750 per acre for all acreage located within the prospect.
The aggregate payment required by the company for 11,895.65 acres acquired is $4.2 million.
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