The company will pay 60% of the cost of drilling, completing and equipping a vertical Bakken oil well to earn the working interest.
Gulf Shores will also pay 39% of the drilling, completion and equipping costs of an additional three vertical Bakken oil wells on the 160 acres to earn a 39% interest in each well.
The company also earns the right to participate on the same basis on an adjacent 320 acres, and this acreage is centered on a seismically defined structure located one mile from existing Bakken oil production.
According to Gulf Shores, drilling operations on the first well is expected to begin this month.
