JBL Energy Partners, an oil and natural gas exploration and production company, and its partners, Wednesday announced the execution of a Letter Of Intent (LOI) to sell its interest in approximately 23,000 acres in Leon County, Texas, within the prolific Woodbine play.
The sale would include all oil, gas and mineral rights currently owned by JBL and its partners with the acreage position, to a large independent exploration and production company, and is expected to close on or about June 15.
"We are very pleased to have executed this letter of intent to sell part of our position in the Woodbine play to a large independent E&P company," said Jason Lane, CEO, JBL Energy Partners. "We are currently working multiple projects in both East Texas and the Gulf Coast region, which we plan to further develop using the proceeds from this potential sale."
Over recent years, the Woodbine oil play this area has begun to see much activity in the drilling of Horizontal Woodbine Sandstone wells. Estimated ultimate recoveries documented by operators in the Horizontal Woodbine Sandstone range from 300,000 to 500,000 barrels of oil. Several companies are active in the area including but not limited to Apache, Encana, Chesapeake, EOG, Samson, Petromax, Richland Resources and Allied Operating.
Lane continued, "Having been acquiring and developing early stage oil, gas and mineral plays in the East Texas basin for over ten years, I am very excited about JBL's future prospects in the region. As a small independent with excellent local relationships and top notch human and technological resources to draw on, JBL Energy Partners is able to reduce costs per prospect and thus provide a much greater rate of return for our employees, partners and investors."
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