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
Yellen Expects Further Sanctions on Iran, Oil Exports Possible Target
2024-04-16 - U.S. Treasury Secretary Janet Yellen intends to hit Iran with new sanctions in coming days due to its unprecedented attack on Israel.
The Jones Act: An Old Law on a Voyage to Nowhere
2024-04-12 - Keeping up with the Jones Act is a burden for the energy industry, but efforts to repeal the 104-year-old law may be dead in the water.
Kinder Morgan Exec: Building Pipelines ‘Challenging, but Manageable’
2024-04-05 - Allen Fore, vice president of public affairs for Kinder Morgan, said building anything, from a new road to an ice cream shop, can be tough but dealing with stakeholders up front can move projects along.
FERC Again Approves TC Energy Pipeline Expansion in Northwest US
2024-04-19 - The Federal Energy Regulatory Commission shot down opposition by environmental groups and states to stay TC Energy’s $75 million project.
CEO: Linde Not Affected by Latest US Green Subsidies Package Updates
2024-02-07 - Linde CEO Sanjiv Lamba on Feb. 6 said recent updates to U.S. Inflation Reduction Act subsidies for clean energy projects will not affect the company's current projects in the United States.