The companies plan to drill to 12,500ft to test the Nodasaria Frio Sand (9,400ft), the Cockfield Sand (10,700ft) and the Sparta Sand (12,300ft), all of which are major producers of oil and natural gas in surrounding fields at Fordoche, Livonia and Opelousas.
According to AER, the lease acquisition is expected to take place in early November and drilling will start by February 2012.
AER president and general counsel Stan Wilson said new production upon completion is expected to recover a minimum of 320,000 barrels of oil and 3.2 billion cubic feet of natural gas from the Nodasaria Frio alone, resulting in a potential return of $38m based on risk-adjusted prices of $80 per barrel and $4 per 1,000 cubic feet of natural gas.
"With another five development wells to be drilled, the AER JV expects to generate between $825m to $1.87bn in gross revenue based on Riverton’s internal projections," Wilson said.
