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Pennpetro Energy PLC on Thursday said it has signed an agreement with ESG Energy Inc through its wholly owned subsidiary, Nobel Petroleum USA Inc, for a proposed petroleum joint venture.
Pennpetro is an independent oil and gas company focused on production in the Gonzales oil field in Texas, US. Nobel Petroleum is a London-based exploration and production company engaged in oil and natural gas projects.
According to the agreement with ESGY, Nobel will be responsible for up to 75% of the cost to drill and complete two exploration wells deep enough to test certain shallow gas seismic prospects for early production.
Nobel will be the operator, carrying ESGY for 12.5% working interest of the cost to drill and complete each well to the tanks. ESGY will have the right to back-in for a further 12.5% working interest after Nobel fully recovers its expenditure.
Pennpetro also said that Nobel has agreed terms for a joint venture focused on the Austin Chalk interval, which covers 250,000 acres in Gonzales County, Texas.
Nobel will pay 33.3% of the cost to drill and complete up to ten development wells to the tanks for a net 25% working interest in each well.
‘These proposed joint ventures with these two, exciting Gulf Coast opportunities complements our existing Gonzales oil development while increasing our exposure to technological innovation relative to the Austin Chalk play as well as to natural gas,’ said Pennpetro's chief executive officer, Tom Evans.
Looking to the future, Pennpetro said that a recent scouting trip to Tunisia had reaffirmed its interest in establishing a foothold in the country.
It announced the appointment of Andy Clifford as chief operating officer of the company.
Pennpetro shares closed 2.0% higher at 12.75 pence in London on Thursday.
Last week Friday, for the first half ended June 30, Pennpetro reported a pretax loss of $205,000 narrowed from $482,000 year-on-year. It also reported no revenue, unchanged from last year.
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