Stratex Oil & Gas Holdings, Inc. (OTC Markets: STTX) has entered into a joint development agreement (JDA) with Eagle Oil & Gas Co. and Eagle Dodge City Partners LP, pursuant to which Stratex may earn up to a 50% working interest (WI) in approximately 35,000 leasehold acres located in Ford County, Kan.
As per the terms of the JDA, Eagle, as operator, will initially drill four wells targeting the Mississippi Lime, which produces locally. It is anticipated that the first such well will be spudded within 90 days. Stratex has agreed to pay 75% of the estimated drilling and completion costs of these 4 initial wells, in return for a 50% WI therein. Subsequently, Stratex may elect to participate in the drilling of additional wells. Provided that the Company makes all required timely payments under the JDA, upon the completion or abandonment of the next six wells, Stratex will receive an assignment of an undivided 25% WI in the aforementioned 35,000 acres. Upon the completion or abandonment of 10 more wells, Stratex will receive an assignment of an additional undivided 25% WI, totaling a 50% WI. Following the drilling of these 20 wells, Stratex will drill future locations with Eagle on a 50/50 "heads up" basis.
Stratex's management believes there exists the opportunity for the drilling for significant additional development on the acreage. To that end, the JDA has also established an area of mutual interest in Ford County, pursuant to which Stratex and Eagle have each agreed to permit the other party to acquire an undivided working interest in new leases.
Stratex is based in Houston.
Recommended Reading
Subsea Tieback Round-Up, 2026 and Beyond
2024-02-13 - The second in a two-part series, this report on subsea tiebacks looks at some of the projects around the world scheduled to come online in 2026 or later.
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Tech Trends: QYSEA’s Artificially Intelligent Underwater Additions
2024-02-13 - Using their AI underwater image filtering algorithm, the QYSEA AI Diver Tracking allows the FIFISH ROV to identify a diver's movements and conducts real-time automatic analysis.