AER Inks JV Agreement with Black Gold Exploration
AER has successfully signed an agreement with Black Gold Exploration LLC of Farmersville, Tx. for the purchase of a 50% interest in a joint venture. AER Energy Resources, Inc. is purchasing a 50% joint venture interest for the drilling of two new wells on leases in Knox County, Texas. The agreement calls for a Definitive Joint Venture to be executed no later than October 20, 2011 with closing no later than November 11, 2011. Both companies expect successful completion of the JV.
The Black Gold joint venture involves the drilling of two 1800 feet vertical wells through the Wolfcamp Lower Permian Sandstone, the Saddlecreek Sandstone, the Noodle Creek Sandstone and the Stockwether Limestone. Upon completion the JV expects well production to approximate 60 Barrels of oil per day. At risk conservative pricing of $80 bbl; the JV is estimated to be valued at upwards of $1.3 million annually.
Stanley F. Wilson, AER Energy Resources, Inc., President stated, "AER continues to implement its plan of investing in existing leases for the drilling of new wells and secondary recovery wells with established industry partners. This opportunity to Joint Venture with Black Gold Exploration LLC is a good example of our continued success and increases our previously announced drilling and rework projects on a combined wells basis with Black Gold Exploration LLC, Multiplex Resources, Inc. and Rehoboth LLC. to 31 total wells."