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North American Petroleum (LSE:NAPP), a company focussed on developing interests in proven US onshore oil and gas formations, has announced its participation in an additional well targeting the proven Mississippi Lime formation, Oklahoma.
This new well is NAP’s eighteenth and is in line with the company’s strategy to build net production and reserves by acquiring and developing a portfolio of leases in liquids rich US onshore hydrocarbon plays.
Participation in the Parmley 1-1WH Well:
– NAP has acquired a 6.25% working interest and a 5% net revenue interest (‘NRI’) in the Parmley 1-1WH, a horizontal well operated by Devon Energy, targeting the Mississippi Lime and Woodford formations, Oklahoma
– Total drill costs are estimated at US$3,682,000, with the Company’s 6.25% working interest in the Well estimated at US$230,125
– The Well has been drilled and is awaiting completion
– Lease acquired increases NAP’s acreage to 624 net mineral acres in Oklahoma
North American’s Managing Director Stefan Olivier said, “Parmley represents NAP’s largest interest in a new well to date and demonstrates management’s ability to source and acquire leases in US onshore formations, which allows us to drill alongside established operators such as Devon Energy.
NAP now has interests in 10 producing wells and a further eight at various stages of development. We are actively looking to add to the 624 net mineral acres we currently hold and in the process hit our 12 month target of having interests in 25 wells. Further updates on our progress will be provided, as we look to step up our drilling activity, prove up the reserves on our leases and create value for our shareholders.”
