As part of the deal, the company will acquire around 75% working interest in several leases that cover about 10,000 gross mineral acres.
According to the company, the acreage is on trend with successful discovery wells in the Buda limestone formation in South Texas.
The company has the opportunity to drill, at its expense, a series of earning wells to test the Buda limestone formation, under the terms of the agreement.
Terrace Energy president and CEO Dave Gibbs said the agreement represents another milestone in company’s corporate strategy of securing development rights to historically productive oil formations in South Texas along the Eagle Ford trend.
"We believe the Buda Limestone formation, which is also present on our Maverick County Project, is highly prospective and will be a core focus for our Company as we implement our growth model in South Texas," Gibbs added.
