Sun River Energy has signed a farmout agreement with Devon Energy Production, pursuant to which Devon has granted the company the right to drill on lands subject to oil, gas and mineral leases owned by Devon in East Texas.

The farmout agreement covers 5,700 gross acres in the prolific Carthage Field located in Panola County, Texas.

Under the agreement, Sun River will drill a single vertical Test Well to the Haynesville Shale geological formation on a proposed gas unit by gas unit basis, and will be required to drill Test Well on a different proposed gas unit, approximately every 90 days.

Sun River Operating, Sun River’s operating company, will be the operator on all wells under the agreement.

The geographical area of the farmout is adjacent to and underlies portions of Lake Murvaul in East Texas.

In total there are approximately nine potential gas units with over 89 potential drilling locations on the farmout acreage, Sun River Energy said.