GulfSlope executes letter of intent to form joint venture to work on shallow depth prospects located in the Gulf of Mexico Shelf.
Image: GulfSlope executes letter of intent to form joint venture to work on shallow depth prospects located in the Gulf of Mexico Shelf. Photo courtesy of wasi1370 from Pixabay.
Independent oil and natural gas company GulfSlope Energy has announced the formation of a joint venture with a privately held oil and gas company to generate and drill shallow depth prospects in the Gulf of Mexico.
GulfSlope Energy has executed a letter of intent with its partner to establish the joint venture.
According to the letter of intent, both the partners would sign definitive agreements for the joint venture on or before 31 August 2019, with an initial term of one year and option to renew for an additional one year term.
Under the joint venture, GulfSlope intends to retain and deploy a supra salt evaluation team comprised of three geoscientists and a manager to identify, evaluate and recommend targets for lease acquisition, farm-in and drilling.
GulfSlope will serve as operator in the joint venture
In addition, the company would also serve as operator and compensated for the management and administration of the joint venture, along with reimbursement of direct G&A costs incurred by the joint venture.
GulfSlope Energy said that its JV partner is expected to hold the right to participate up to 50% in the drilling of the shallow depth prospects generated and developed by the evaluation team.
The partner will also provided with an option to participate in the company’s Corvette Prospect on a promoted basis, subject to specific performance criteria.
GulfSlope chairman and CEO John Seitz said: “We are excited about the opportunity to be part of this Joint Venture and it represents a natural complement to our existing subsalt exploration program.
“Our participation in this Joint Venture will allow us to leverage our proprietary reprocessed seismic data by pursuing supra salt prospects that have been overlooked by industry.”
In September 2018, GulfSlope stared drilling of its initial subsalt exploration well in the Tau Prospect, located on Ship Shoal Area, South Addition Blocks 336/351 in the Gulf of Mexico.