By OGJ editors
HOUSTON, Mar. 28 -- Encore Acquisition Co., Fort Worth, and ExxonMobil Corp. have agreed to further develop seven natural gas fields in West Texas jointly.
Initially, Encore will drill 24 wells in the fields, serving as operator until their completion, after which ExxonMobil will become operator. Encore will assume a 30% working interest in these and future wells in the fields.
The agreement covers formations in Brown Bassett field in Terrell County; Parks, Pegasus, and Wilshire fields in Midland and Upton counties; and Block 16, Coyanosa, and Waha fields in Ward, Pecos, and Reeves counties. The JV will target formations in the Barnett, Devonian, Ellenberger, Mississippian, Montoya, Silurian, Strawn, and Wolfcamp horizons.
Encore, which intends to invest $17 million in 22 wells this year, plans to have four rigs operating in West Texas by yearend. The company said it would propose and drill wells as long as it is engaged in continuous drilling operations.
