
(Source: Shutterstock.com)
Minerals and royalties company Formation Minerals Inc. has entered into a purchase and sale agreement with a private seller to acquire producing mineral interests in the Haynesville Shale.
The assets, in Bienville Parish, Louisiana, currently have three producing oil wells and operated by Aethon Energy Management LLC, which is testing 2-mile to 3-mile laterals for the wells. The asset. Formation said it paid $220,000 in cash for the interests.
“The wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage,” Scott Cox, Formation’s president and CEO, said in the company’s June 27 press release. “We have great confidence both in Aethon as an operator and in these assets, and we look forward to jointly benefiting as they continue to operate and develop the area.”
Pre-permits have been filed for six to nine more oil wells on the property.
Formation is entitled to the cash flow from the property’s oil and gas production starting July 1, under the agreement.
The company said it expects to close on the acquisition July 26 following the satisfaction of customary closing conditions. Formation is working to secure the financing needed to complete the acquisition.
“We have been and continue to be diligent in buying properties at the right price and in the right areas, thus we believe the company and its investors will reap the benefits of the rise in commodity pricing, as well as the continued development of our acreage,” Cox said.
Recommended Reading
Birch Resources Mows Dean Sandstone for 6.5 MMbbl in 15 Months
2025-01-06 - Birch Resources has averaged 7 MMboe, 92% oil, from just 16 wells in the northern Midland Basin’s Dean Formation in an average of 15 months each, according to new Texas Railroad Commission data.
Occidental to Up Drilling in Permian Secondary Benches in ‘25
2025-02-20 - Occidental Petroleum is exploring upside in the Permian’s secondary benches, including deeper Delaware Wolfcamp zones and the Barnett Shale in the Midland Basin.
Coterra to Rig Back up in Marcellus to Arrest Decline
2025-02-26 - “This increase in activity is from zero to ‘some’ activity. I wouldn't characterize this as ‘leaning into’ a gas market,” Shane Young, Coterra Energy’s CFO, told investors.
Comstock Doubling Rigs as Western Haynesville Mega-Wells’ Cost Falls to $27MM
2025-02-19 - Operator Comstock Resources is ramping to four rigs in its half-million-net-acre, deep-gas play north of Houston where its wells IP as much as 40 MMcf/d. The oldest one has produced 18.4 Bcf in its first 33 months.
Power Co. Proposes NatGas Plants Near Texas Haynesville Shale
2024-12-18 - An American Electric Power (AEP) subsidiary plans to develop two natural gas-fired generation projects near the prolific Texas Haynesville shale play.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.