In February 2013, the company entered into a farm-in agreement to acquire a 75% working interest and a 56.25% net revenue interest in various leases which cover around 10,000 gross (6,700 net) mineral acres.
As per the latest deal, Terrace will develop the remaining 3,300 net mineral acres, while the firm now has the right to test and develop the Buda Limestone in around 10,000 net mineral acres.
Terrace Energy president and CEO Dave Gibbs said the acquisition gives the company to control over the project’s development pace, which will be commenced on or before 1 August of this year, and allows to consider its development in partnership with strategic industry participants.
"We are confident the Buda Limestone formation, which is also present on our 147,000 gross acre Maverick County Project, is highly prospective and will be a core focus for our Company along with the development of our STS Olmos Project and other significant Cretaceous pay intervals that are present on each of our acreage holdings," Gibbs added.
