AER Energy Resources, Eric Johnson, Riverton Energy partner on US$1.88B JV to buy oil, gas leases in south-central Louisiana with intent to drill to 12,500 feet to test Nodasaria Frio, Cockfield, Sparta sands
October 7, 2011
– AER Energy Resources, Inc. (PINKSHEETS: AERN) has successfully signed an agreement with Eric Johnson and Riverton Energy for the formation of a Joint Venture to purchase oil and gas leases in South-Central Louisiana with the intent to drill to 12,500 feet to test the Nodasaria Frio Sand (9,400 feet), the Cockfield Sand (10,700 feet) and the Sparta Sand (12,300 feet), all of which are major producers of oil and natural gas in surrounding fields at Fordoche, Livonia and Opelousas.
Stan Wilson, AER President and General Counsel, stated, "Having previously worked with Riverton Energy on capital formation for the development of two Eagle Ford Shale mineral leases, the Mathews and the Murphy Leases in Zavala County, Texas, I am pleased that AER Energy Resources, Inc. has been afforded this opportunity to joint venture with Riverton Energy on the "Bayou B Prospect" in the Atchafalaya Basin area with an expected lease acquisition to take place in early November and drilling to begin no later than February 2012."
"Funding for the purchase and drilling expenditure has been dedicated and new production upon completion is expected to recover a minimum of 320,000 barrels of oil and 3.2 billion cubic feet of natural gas from the Nodasaria Frio alone, resulting in a potential return of $38,000,000 based on risk-adjusted prices of $80 per barrel and $4 per 1000 cubic feet of natural gas. With another five development wells to be drilled, the AER JV expects to generate between $825 million to $1.875 billion in gross revenue based on Riverton's internal projections," Mr. Wilson added.
"Seismic data on the prospect demonstrates three stacked sands, and we intend to penetrate all three with the first well," says Riverton's Eric Johnson.
As a part of the proposed Joint Venture, Mr. Johnson and Riverton Energy will manage the project, and have a local operator ready to commence drilling operations.
ABOUT AER ENERGY RESOURCES, INC.
AER Energy Resources, Inc. (www.aernenergy.com) is a diversified holding company with an emphasis on oil and gas exploration, drilling, well completion and fuel distribution.