The deal calls for a 50% joint venture (JV) interest for the drilling of a minimum of two new wells on leases in Knox County, Texas, US.
The Black Gold JV involves the drilling of two or more 1,800ft vertical wells through the Wolfcamp Lower Permian Sandstone, the Saddlecreek Sandstone, the Noodle Creek Sandstone and the Stockwether Limestone.
According to the companies, drilling is expected to be completed before the end of the year.
AER president and CEO Stanley Wilson said the company continues to execute its plan of investing in existing leases for the drilling of new wells and secondary recovery wells with established industry partners.
