U.S. Gulf of Mexico oil and gas explorer GulfSlope has signed a letter of intent to enter a joint venture for drilling of shallow water depth prospects in the Gulf of Mexico.
GulfSlope said the letter of intent for the JV was executed with “a privately held oil and gas company” without revealing the identity of the partner.
GulfSlope will serve as Operator and will be compensated for the management and administration of the Joint Venture as well as reimbursed for direct G&A costs incurred on behalf of the Joint Venture.
The partner, GulfSlope said, will have the right to participate up to 50% in the drilling of the shallow depth prospects generated and developed by the Gulfslope evaluation team, consisting of three geoscientists and a manager. The evaluation team will have a task to identify, evaluate and recommend targets for lease acquisition, farm-in and drilling.
John Seitz, Chairman and CEO of GulfSlope said: “We are excited about the opportunity to be part of this Joint Venture and it represents a natural complement to our existing subsalt exploration program.”
He added:”Our participation in this Joint Venture will allow us to leverage our proprietary reprocessed seismic data by pursuing supra salt prospects that have been overlooked by industry.”
GulfSlope has said that the plan is to enter into Definitive Agreements for the Joint Venture on or before August 31, 2019, which will have an initial term of one year, with the option to renew for an additional one year term.
According to GulfSlope, subject to specific performance criteria, the partner will be granted an option to participate in the company’s Corvette Prospect on a promoted basis.
As previously reported, GulfSlope last week executed a drilling services contract with EnscoRowan, to secure and utilize the Ensco 102 jack-up rig.
GulfSlope said last Wednesday that the rig would be used for its 2019 Gulf of Mexico drilling program. GulfSlope anticipates spudding a well before year-end in the Vermilion Area, South Addition Block 375 (Corvette prospect).
The exploration plan for this block was approved on March 15, 2019, with an amended plan currently under review with the U.S. Bureau of Ocean Energy Management (BOEM). The company previously expected to execute a rig contract for the drilling of the Corvette Prospect in May 2019 but this way delayed by a month.
Offshore Energy Today Staff
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