Westside Energy Inks Deal for Barnett Shale Development
Westside Energy has signed a joint development agreement with EBS Oil and Gas Partners Production Company, L.P. to acquire and develop leases in Cooke, Montague and Wise Counties in Texas. Under the terms of the agreement, Westside will receive an overriding royalty interest and/or a carried working interest in all leasehold acquired in an area of mutual interest. Westside will fund up to $1 million of lease acquisition funds over the 18-month term of the agreement and will have the right to fund drilling and completion costs to participate for up to a 25% working interest in all wells drilled. Closing of the agreement will occur on or before May 1, 2005.
Jimmy D. Wright, CEO and President of Westside Energy, said: "We are
excited to be working with the talented team at EBS, who have drilled 21
successful wells in the Barnett Shale since August 2003. Their focus on the
Barnett Shale play as it extends north in Montague and Cook counties
complements our existing Barnett Shale development activity. We anticipate
acquiring more than 4,000 acres under this agreement and have identified and
permitted two initial test wells. We expect to begin drilling the first joint
development well in May 2005 and believe we will be drilling approximately one
well per month as part of this deal."
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