Start Scientific specializes in the exploration, drilling, extraction and
delivery of sweet crude oil, taking specific interest in shallow, deep and
horizontal opportunities overlooked by mid-sized oil and gas companies. The
company is currently focused on developing leases and establishing
joint-venture partnerships for its four primary projects in Mississippi, Texas,
North Dakota and West Virginia. Start Scientific pounced on two farmout opportunities
at the first of the year, starting 2015 with strengthened activity in
Mississippi.
Per a farmout agreement signed in early January with BPS Operating
Services, Start Scientific plans to re-enter and complete 33 old wells, as well
as drill horizontal holes on the top of the structure and testing two zones at
the Flora Field north of Jackson, Mississippi. Discovered in 1943, the field
has produced more than 7.6 million barrels of oil. Five wells are currently
producing roughly 30 barrels of oil per day.
Start Scientific has until April 1, 2015, to tender $500,000 for the
first well to be drilled in the Flora Field. The production interest
encompasses 40 acres around the new well, for which Start Scientific will earn
a 75% working interest before payout and a 60% working interest after. The
company may drill additional wells for $400,000 per well within 60 days of
completing each previously drilled well.
In late-January Start Scientific signed a farmout agreement with Durban
Energy, Inc., located in Jackson, Mississippi. The deal gives Start Scientific
until July 10, 2015, to start drilling a new well on the farmout acreage in
Fayette Field. The field was discovered in 1945 with the completion of the No.
1 M.R. Smith well, which produced 630,288 barrels of oil and 2.3 billion cubic
feet of gas.
Under this agreement, Start Scientific is set to receive 100% of the net
revenue until payout of all costs, at which time the company will assign a 25%
working interest to Durban and partners. Accounting for a 30% royalty burden on
the leases, Start Scientific will have 70% of net revenue. After payout, the
company will have 52.5% of net revenue and Durban will have 17.5% of net
revenue.
The Fayette and Flora farmouts are part of the company’s long-term focus
to grow and develop its leasehold portfolio with new interests as well as older
wells that, through the application of newer technologies, may increase
production and reserves.
For more information, visit www.startscientificoil.com
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