As per the terms of the agreement, USE will earn a 30% working interest (22.5% net revenue interest) in approximately 4,675 gross contiguous acres (1,402.5 net mineral acres) through a combination of a cash payment and commitment well carry.
The prospect is an Eagle Ford shale oil window target in Zavala County, Texas.
Crimson will operate and tentatively plans to spud the first well in the area during the second quarter of this year.
The well is planned to be drilled to a total drilling depth of approximately 12,500ft, and to be completed with 14 fracture stimulation stages.
If successful, the well is planned to be put on production for several months to evaluate well performance and in order to properly plan and budget for an aggressive 2012 drilling program.
