Gulf of Mexico operators extend term for farm-out deal

GulfSlope Energy, Texas South Energy and another, unnamed, partner have decided to extend the term of the letter of intent (LOI) for joint drilling and development of oil & gas prospects in the U.S. Gulf of Mexico.

GulfSlope Energy said on Wednesday that the trio extended the LOI until November 30, 2017, or such later time as they mutually agree.

The two companies signed the initial LOI with an undisclosed firm, only described as a ‘large international oil and gas company,’ in mid-September.

Under the principal commercial terms of the farm-out, the unnamed partner will drill a minimum of three exploratory wells with the option to participate in additional three-well phases on the same basis.

The partner will earn a 75% working interest in each prospect by paying 90% of the exploratory costs and making a cash payment of $1.5 million to be split between GulfSlope and Texas South on a 73%/27% basis.

According to GulfSlope, it will be the initial operator of record and will retain a 20% working interest in the subsalt prospects included in the first phase while Texas South will retain a 5% working interested for the subsalt prospects included in the first phase.

Upon achieving certain milestones, the partner will have the right to purchase up to 20% of the common stock in GulfSlope and Texas South.

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

FPSO World Congress 2018

This year’s FPSO World Congress will tap on this green shoots of recovery and will focus on practical strategies to address key project…

read more >

ONS 2018

Offshore Northern Seas (ONS) provides a platform for the presentation of the political, economic and technological issues involving…

read more >

FPSO World Congress 2018

The Congress will continue its global focus and will feature the biggest and most important names in the FPSO industry…

read more >

SPE Asia Pacific Oil & Gas Conference and Exhibition 2018

As the energy industry adapts to a new status quo operating under sustained low oil prices, there continues to be a need for the industry…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply