Mogul Enters JOA for Tx. Prospect
Mogul Energy recently acquired the oil and gas rights on more than two dozen leases in Jackson County, Texas. The acreage will provide the first of two potential locations in Mogul's South Texas drilling program announced earlier this year.
In addition, Mogul entered into a Participation Agreement and signed a Joint Operating Agreement (JOA) with Fossil Oil Company, LLC and the C. H. Squyres Family to add adjoining acreage already leased and to participate equally in the drilling of the prospect. The additional acreage would add three to five prospective well locations. The combined leases total approximately 480 acres.
Mogul will be the operator of record for this prospect with the first well to be permitted and drilled by mid-February, 2011. "Our plan is to drill the initial well to a total depth of 7,400 feet and test multiple zones within the Frio formation that have been identified as productive or having the potential of being productive based upon the well data in the area," said Tim Turner, Mogul's Executive Vice President.
"Mogul has made a commitment to pursue multiple drilling opportunities in the Texas Gulf Coast region. This is the first of several prospects we have planned in the area over the next 18 months," he added.