Austin Forms JV with Drilling Company to Develop Austin’s Pierre Shale

Source: www.gulfoilandgas.com 3/23/2015, Location: North America

Pathfinder Prospect, Fremont County, Colorado (100% of 11,5 60 acres)

Austin Exploration has formed a Joint Venture with Pierre Energy Partners (“Pierre Energy”) to develop its Pierre Shale prospects at the Company’s 100% controlled 11,560 acre oil and gas property in Fremont County, Colorado. Austin and Pierre Energy have agreed to terms for two Pierre wells to be drilled back-to-back in April and May.

Pierre Energy will carry Austin on the drilling costs to earn 50% of the oil production from C18#3 and C18#4 exploration wells. Austin will pay for the completion costs of the wells in the event of a discovery. In connecti on with the development of the Pathfinder Pierre Prospect Denver-based Craig Energy has been engaged to provide drilling services to the Joint Venture. Founded in 1981, Craig Energy provides construction, drilling, and water management services to its customers across basins including the Niobrara in Colorado, and the Bakken in North Dakota.

“This agreement effectively advances the development of our Pierre shale opportunity without up-front cost or risk to Austin. We have worked with several companies on our Colorado property and this company drilled the last Pierre well on our Colorado property and performed a safe, efficient, cost effective and overall outstanding job and this provides us with great confidence that they are an efficient and superior partner to other interested parties,” said Guy Goudy, COO of Austin Exploration.

The Company is further pleased to advise that both companies, Austin and Pierre Energy, are in advanced negotiations for a long-term partnership with the objective of a continuous drilling program for the property. This next phase of this program would see Pierre Energy drilling ten wells in exchange for a 50% ownership of the Pierre formation over the 11,560 acre property. Pierre Energy would earn this 50% upon drilling completion of the tenth well and until then would earn 50% of Austin’s NRI for each well bore.

After the ten wells are completed in phase two, Pierre LLC, will drill a minimum of two wells per year and Austin will complete the wells for production cash flow. Dr Mark Hart, Austin’s Managing Director & CEO, commented that “This is a great deal for Austin and a win-win for all involved. We now have a highly experienced and high calibre drilling partner for our Pathfinder Pierre property – which lies in the second oldest producing oil region in the United States. This partnership means we can drill more wells and significantly ramp up production when oil prices return to normal status and continue the Company’s growth. We are focused on growing shareholder value and doing so without raising equity in this depressed oil price environment.”


Norway >>  5/12/2022 - Neptune Energy Norge AS, operator of production licence 153, has concluded the drilling of appraisal wells 35/9-16 S and 35/9-16 A on oil and gas disc...
Canada >>  5/11/2022 - The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has issued Calls for Bids for Exploration Licences in the Eastern Newfoundland...

Iraq >>  5/10/2022 - Genel Energy has provided an update on the Sarta PSC (30% working interest and operator).

Testing of the Sarta-5 appraisal well has been co...

Cameroon >>  5/9/2022 - Tower Resources plc, the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update on activity in respect of its Thali Pr...

Equatorial Guinea >>  5/9/2022 - Panoro Energy ASA (“Panoro” or the “Company”) is pleased to announce that the Ministry of Mines and Hydrocarbons of Equatorial Guinea and the Joint Ve...
Guyana >>  5/9/2022 - CGX Energy Inc. and Frontera Energy Corporation, joint venture partners (the "Joint Venture") in the Petroleum Prospecting License for the Corentyne b...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.