Independents team up on Barnett Shale

Independent producers Westside Energy and EBS Oil and Gas Partners Production have signed a joint development agreement to acquire and develop Barnett Shale leases in Cooke, Montague and Wise counties of North Texas, Westside said April 18.

Under the terms of the agreement, Westside said it would receive an overriding royalty interest and a carried working interest in all leases acquired through the partnership. In exchange, Westside said it would pay for $1 million of lease acquisition costs over the 18-month term of the agreement and would have the right to finance drilling and completion costs to participate for up to a 25 percent working interest in all wells drilled. The deal is expected to close by May 1.

“Their focus on the Barnett Shale play as it extends north in Montague and Cook counties complements our existing Barnett Shale development activity,” said Jimmy Wright, Westside’s president and chief executive officer. “We anticipate acquiring more than 4,000 acres under this agreement.”

He said the partnership expects to begin drilling its first development well, “and we believe we will be drilling approximately one well per month as part of this deal.”

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