The land consists of 82.89 acres located in the Pettet formation close to the town of Rusk, which is the Cherokee county seat. The agreement with Ponta E&P LLP is the first project in Horizon’s ongoing efforts to explore, develop and produce domestic oil and gas.
Throughout East Texas, producers are returning to fields such as the Holmes property and successfully employing horizontal drilling and hydraulic fracturing in their quest for the next "Eagle Ford."
According to texasdrilling.com, Rusk County had 2,992 producing leases that yielded 162,692 BBL of oil and 8,558,754 MCF of gas in November 2013. Neighboring Cherokee County’s 479 producing leases yielded 19,750 BBL of oil and 1,448,151 MCF of gas during the same month.
"We are optimistic about our relationship with Ponta and expect this project to become an important segment of our portfolio," said Robert Bludorn, President and CEO of Horizon Energy Corporation. He added, "This area has demonstrated conservative asset appreciation and our research validates these leases are an excellent prospect for a renewed drilling program."
