The agreement covers 20,000 acres of exploration targets in the Maverick Basin in South Texas. High quality 3-D seismic data has been shot over the entire acreage area and has identified a number of objectives in the project. MBE and Blue Star will each have a 50% working interest in the acreage. Touchstone will be the operator of the project and anticipates drilling approximately 125 wells on the acreage covered by the agreement, which based on engineering estimates prepared by Netherland Sewell, could yield in excess of 180 Billion Cubic Feet of Natural Gas and Equivalents of Production to the venture.
Touchstone will continue to pursue aggressively the acquisition of other acreage in the Maverick Basin, which has seen a marked increase in exploration and development activity over the last eighteen months. Stephen Harrington, President of Touchstone, said "we believe that this type of opportunity, relatively shallow drilling of wells with very low exploration risk which we can operate and control, provides the ideal situation for growth for Touchstone. We anticipate commencing our exploration activities by late July and plan on a very aggressive drilling schedule through year end on this project."
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