AER Energy Resources has signed an agreement with Eric Johnson and Riverton Energy to form a joint venture to acquire oil and gas leases in South Central Louisiana, US.
The joint venture will acquire the leases with an intent to drill to 12,500ft to test the Nodasaria Frio Sand, the Cockfield Sand and the Sparta Sand in the surrounding fields at Fordoche, Livonia and Opelousas.
AER president and general counsel Stan Wilson said that the lease acquisition will take place in early November 2011, with drilling to begin in February 2012.
"The AER joint venture expects to generate between $825m and $1.87bn in gross revenue based on Riverton’s internal projections," Wilson said.
The firm will recover a minimum of 320,000 barrels of oil and 3.2 billion cubic feet of natural gas from Nodasaria Frio alone, resulting in a potential return of $38m.
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