Loyz, Rex Oil & Gas in US farmin with Fram

Loyz Energy Ltd. of Singapore and technical partner Rex Oil & Gas Ltd. have agreed to participate in the drilling of 80 wells in Colorado and North Dakota on acreage held by Fram Exploration, Trondheim, Norway.

Loyz and Rex Oil & Gas will provide two rigs and earn a 40% share of the net revenue interest in each producing well, convertible into a working interest. Splitting costs and interests evenly, they’ll supervise and execute drilling under a turnkey contract.

Fram will contribute $12 million of the cost of drilling the first 40 wells. Loyz and Rex will contribute the remainder, estimated at $28 million. For the other 40 wells, Fram will pay $28 million and Loyz and Rex the rest, estimated at $12 million.

In Colorado, Fram operates the 90,445-acre Whitewater Federal Production Unit in the Piceance basin (OGJ Online, Apr. 14, 2010). Within the unit, it holds a 95.6% working interest in 54,000 acres.

Fram made an oil discovery in the previously gas-prone area in 2010 in its Mansur 33-1-K well.

In North Dakota, Fram holds leases centered on 10,863 acres in Renville County in the Williston basin. It believes shallow Mississippian Mission Canyon carbonate is prospective for oil in the area. It says an exploratory well it drilled in March 2011, Funke No. 1, cut 32 ft of net oil pay in the formation.

Related Articles

Baker Hughes: US drilling rig count drops to 1,803

03/21/2014 After consecutive weeks of significant gains, the US drilling rig count lost 6 units to 1,803 rigs working during the week ended Mar. 21, Baker Hug...

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected