The agreement calls for a minimum of four wells to be drilled in the initial programme year
Black Stone Minerals announced that it has entered into a development agreement with affiliates of Aethon Energy (“Aethon”) with respect to the Company’s undeveloped Shelby Trough Haynesville and Bossier shale acreage in Angelina County, Texas.
The agreement provides for minimum well commitments by Aethon in exchange for reduced royalty rates and exclusive access to Black Stone’s mineral and leasehold acreage in the contract area. The agreement calls for a minimum of four wells to be drilled in the initial program year, which begins in the third quarter of 2020, increasing to a minimum of 15 wells per year beginning with the third program year.
“We are excited to partner with Aethon, one of the most experienced operators in the Haynesville Shale, to restart development of this important, high-net interest area for Black Stone,” stated Thomas L. Carter, Jr., Black Stone Minerals’ Chairman and Chief Executive Officer. “The Shelby Trough holds enormous resource potential, and our deal with Aethon positions both companies to benefit from decades of attractive development opportunities.”
Source: Company Press Release