The lease is approximately 800 contiguous acres of mineral interest, formed as the Hancock Barnett Shale Lease Partnership, located in Cooke County, Texas. Spacing requirements for Barnett Shale wells are 40 acres allowing for approximately 20 drill sites. The undeveloped acreage is free of liens and encumbrances. Lease owners will receive cash payment for each drill site and a carried working interest in each new well drilled on the lease. F10 expects to also participate in the drilling of the wells on the lease.
"This is the largest project in which F10 has participated to date," stated Charles H. Blake, Jr., President of F10. "The Hancock Barnett Shale project represents a unique opportunity for F10 to participate in a drilling project with very minimal risk."
More than 20 wells have been drilled within a few miles of the lease acreage over the last year. The thickness of the potential pay zone and the highly fractured nature of the formation as indicated by the drilling logs are piquing interest. Some geologists attribute the fracturing to an arch, the Muenster Arch, located east of the lease acreage and running northeast. The arch probably collided with the Barnett Shale during a major geological event millions of years ago. The fracturing allows hydrocarbons more mobility within the formation and the thickness suggests collection of larger reserves. Samples of production from wells in the area indicate the oil to be high gravity and the gas to have very high British Thermal Unit (btu) content.
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