Pumpjack near mountains. (Source: Shutterstock)
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.
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