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Grid Petroleum Corp. (GRPR) Signs Joint Venture Agreement On Texas Oil And Gas Property

|Includes: Grid Petroleum Corp. (GRPR)

Grid Petroleum reported that the company has signed an agreement with a private oil and gas operator to jointly develop a prospective field in Texas. The Joint Venture Development Agreement (JVDA) covers a 4,500 acre section of the Northwest Premont Field located in Jim Wells County, Texas. The oil and gas field is part of the Gulf Coast Trend of South Texas.

Grid Petroleum estimates that the area included under the JVDA may contain potential reserves of approximately 20 million barrels of oil and 20 billion cubic feet of natural gas. The field has 15 prospective hydrocarbon formations that could be developed.

Grid Petroleum said that the JVDA details the initial phase of development, which includes the drilling and completion of 20 new wells and the redevelopment of eight wells that are currently shut in and not producing.

The first well under the agreement has been permitted, and it is expected to target the Frio Sands formation at a depth of approximately 5,000 feet. The company anticipates drilling to commence on March 15 and take approximately 30 days. The initial well is an offset well to an earlier well that was successfully drilled to a depth of 4,000 feet, finding approximately 118 feet of net oil and gas pay.

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