Imperial Oil & Gas has signed a non-binding letter of intent (LOI) to acquire a 35 acre mineral lease in Montague County, Texas.
The LOI is in line with Imperial’s strategy to develop low entry cost, lower risk opportunities with the potential for rapid payback, to complement its planned resource plays.
The LOI contemplates an agreement to purchase a mineral lease over 35 acres with multiple possible producing formations, including the Strawn Conglomerate, and the concurrent acquisition of an existing well bore.
Imperial said due to the lack of completion funding, the well bore was abandoned historically.
Imperial plans to re-enter the well with a view to analyze the existing well bore using modern technology not available at the time of abandonment and then completing the well in one or more of several possibly productive zones.
The core objective is to rapidly put the well on production at a very low entry cost, according to the company.