The JV effectively enables Ensight to acquire a 50% participation in the leasehold interest in the Calvin Field held by Meridian. On completion Ensight will reimburse Meridian for 50% of its costs to date (some $400,000) and contribute to 50% of costs incurred going forward. The JV also enables Meridian to utilize Ensight's extensive local area expertise and it is envisaged that the work program will commence in Q1 2007. The initial focus will be the Field Development study and then the compilation of a detailed plan of exploitation of both the upper zone, including Rodessa and Sligo/Pettit down to Calvin Deep and Troy Lime in the lower zone.
The execution of the Calvin Field JV further enhances the Company's strategy to diversify the risk spread over their asset base within the US and Australia.
The Company also announces it has commenced work on the completion of the Calvin 36 #1 well. Additional flow enhancement and clean up work will be conducted and on completion, the Company plans to hook-up to the local pipeline system for flow-testing to begin.L
Commenting on the JV, Tony Mason, CEO, Meridian stated, "Ensight is a very large regional player within Arkansas, Louisiana and Texas and we are very excited to have completed the JV agreement with them. Having Ensight on board further endorses the technical and commercial viability of the Calvin Field and we look forward to reporting on the work program over the coming months."
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