Directors of Empire Energy Group Ltd. said Aug. 10 the company entered a 50:50 joint operating agreement (JOA) with Palomino Petroleum Inc. to develop part of its land in Gove County, Kan.
The land tract spans 4,160 gross acres.
Several successful wells have been drilled, and the structure is complex, Empire said. Palomino has successfully drilled the region, the company added.
Completing the initial well might help confirm additional prospects in the area. 3-D seismic information from two separate shoots indicate there is a geologic structure that will likely yield multiple well locations, Empire said. The information was gathered by both companies.
An initial well location was identified, and the well’s projected total depth is 4,850 feet. Each well under the JOA will earn an assignment of 10 acres. The primary target pay zones are the Lansing-Kansas City, Johnson and the Morrow sands, with the secondary targets being the Marmaton and the Fort Scott formations.
The initial well is expected to be spudded by the end of August 2015. Completed well and storage costs (which will be built to expand for at least 5 to 6 wells)will be around $440,000 with dry hole costs of $180,000. Empire said five additional locations were identified, and the program could total 20 wells.
Newton, Kan.-based Palomino has extensive operating in experience in northwest Kansas, operating six drilling rigs. Using its own equipment, Palomino will assume responsibility for drilling and completion. Once the well is completed Empire will assume responsibility for ongoing production operations.
Empire Energy Group Ltd. has U.S. operations and is based in Sydney, Australia.
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