By OGJ editors
HOUSTON, Apr. 26 – UnionTown Energy Inc., Billings, Mont., said Talisman Energy USA Inc. accepted its offer to purchase the 24,000-acre Darby property on the Wyoming thrust belt near giant LaBarge field.
Two prospects have been identified. One prospect covers 1,940 acres with dry gas in the Madison and Bighorn at 7,000-9,500 ft. The other prospect covers 3,860 acres with dry gas in the Madison and Bighorn at 7,000-9,500 ft and oil in the Nugget at 17,000 ft.
In return for $17 million in the next 12 months, UnionTown will acquire up to a 70% working interest in the Darby block that carries a 75% net revenue interest.
UnionTown will pay 100% of the cost to drill and complete the first well on Prospect One, which will initially entitle the company to an 85% working interest before payout and a 70% working interest after payout on the two prospects, where the vendor and operator will retain a 30% carried working interest thereafter. Closing documents are to be finalized within 2 weeks.
Rendering from Cedar LNG.
US Government Accountability Office.
