Under the terms of the area of mutual interest (AMI) agreement, Ameriwest will operate and receive a 75% net revenue interest (NRI) until payout which is based on a three-well program. After payout, and on a well-by-well basis, Tyler Rockies Exploration (TREX) reserves an option to back-in at a 25% working interest.
The Geary Prospect is located in the southwestern portion of the Powder River Basin. Company management believes that a full field program based on 40 acre spacing could consist of 18 wells at an average depth of approximately 7,000 feet.
Walter Merschat, president of Ameriwest Energy, said: We have been working on this agreement for some time now and are very pleased with the results. Everyone here at Ameriwest is extremely confident that we have acquired an excellent addition to our growing portfolio which adds significant breadth to our project mix.
