The area of the Cornerstone project has produced over 300 million barrels of oil and more than 2.3 trillion cubic feet of gas. Pegasi Energy is focused on applying new horizontal drilling and multistage frac technology to recover substantial additional reserves that remain in place.
Mike Neufeld, president and CEO of Pegasi Energy, said: “We designated a specific geographic area of approximately 28,000 acres within the large Cornerstone project and created an area of mutual interest. The company already has a leasehold position in the AMI and our partner will commit up to $4,000,000 in expanding and renewing our acreage position by paying 100% of the cost for a 50% interest.
“This allows us to protect our present position and to add to our inventory. We anticipate that this arrangement will result in drilling of new wells on the mutually purchased acreage in 2010.”
Pegasi Energy is focused on a repeatable and low geological risk project in the east Texas oil and gas region. The company aims to establish a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertake exploration to grow future reserves.
