Exterra Energy has signed an letter of intent (LOI) to acquire 640 acres in the Barnett Shale prospect in Texas.
The LOI has an expected closing date for the first week in October with 1 September being the effective date.
The company has planed to further enhance production by working over the current opportunities and fracing the rest of the 3000ft leg of the horizontal Barnett well.
The company said that fracing has been done on only one third of the 3000ft horizontal leg of the Barnett well.
Exterra expects to frac this leg in the very near term and increase production to approximately 1.2mmcfd or 1.5mmcfd.
In addition, Exterra acquired some work over opportunities with this purchase and believes this acreage should hold at least eight drilling locations with initial production rates of an average 1.2mmcfd to 1.5mmcfd.