FieldPoint Petroleum Corp., Austin, and Riley Exploration Group, Blanchard, Okla., signed a joint exploration agreement to horizontally drill new wells and rework existing vertical wells in Serbin field in Lee and Bastrop counties, Tex.
The companies will pool lease interests in the field and drill as many as 12 horizontal wells in 2014 and an undetermined number over the 5-year agreement span, sharing expenses and revenue pro rata as determined by the acreage contributed by each. This will result in Riley owning 75% working interest and FieldPoint 25%.
FieldPoint has working interests in 72 producing oil and gas wells in Serbin field, 50 miles east of Austin. Cretaceous Taylor sand produces 46° gravity oil from 5,300-5,600 ft true vertical depth.