Entek to Participate in Three Gulf of Mexico Blocks
Entek Energy's subsidiary, South Marsh LLC has signed a participation agreement with Ridgelake Energy of Louisiana to earn up to a 10% interest in three blocks in the Gulf of Mexico held by Ridgelake.
To earn its interest in the leases, South Marsh LLC much reimburse Ridgelake up to 13.33% of certain past costs, and meet up to 13.33% of the cost of drilling to casing election point. In addition, Entek will issue 300,000 options to Ridgelake (or their nominees) to acquire shares in Entek Energy Ltd. The options will be exercisable at 12.9 cents each and will expire on December 30, 2009.
This represents an entry opportunity for the company into an exploration and production area much sought after by prominent energy companies worldwide.
The leases are subject to a 16-2/3% federal royalty and between a 3-1/3% to 4% royalty in favor of certain third parties who generated the properties.
South Marsh LLC has not yet entered into joint operating agreements for these leases (which are to appoint Ridgelake as the operator) which are necessary before South Marsh LLC has an enforceable right to earn an interest in the Leases; and drilling on any of the leases can commence and South Marsh LLC can earn its interest in the leases.
- Entek Finalizes Sells GOM Stake, Adds Niobrara Acreage (Mar 08)
- Entek to Commence Frac Stimulation Program at Battle Mountain (Sep 15)
- Entek Updates Activities in Niobrara Shale Oil Proj. (Sep 01)
Company: Ridgelake more info
- Entek Ups Stake in Gulf of Mexico Leases (Dec 15)
- Entek to Participate in Three Gulf of Mexico Blocks (Sep 26)