MAVERICK Drilling and Exploration Limited has signed two associated agreements that allow for the sale of and complete exit from its one time “flagship” Blue Ridge field in the US.
The first agreement that is final and has been closed is for a portion of one lease to be annexed into the expansion of the main county road. The second agreement is the signing of a Purchase and Sale Agreement for the sale of the field. The total consideration for both agreements totals US$9.1 million.
“We are pleased to announce the signing of the Purchase and Sale Agreement to divest of our Blue Ridge interests, and to announce the final agreement to annex a portion of one of our leases into the main road expansion,” said J. Michael Yeager, Maverick chairman and CEO
“The combination of both of these agreements allows Maverick to completely exit the area, and allows for the redeployment of this capital into our new Eagle Ford acreage.”
The sale of Blue Ridge is a cash transaction from the buyer’s immediately available funds. A down payment has been received and, subject to due diligence, completion is expected to occur in the next few weeks. All terms and conditions are customary for this type of transaction.
Maverick’s Eagle Ford acreage in Dimmit County is an undrilled position offsetting significant proven production. Acreage being targeted for capture by the end of the year totals between 11,000 and 13,000 acres.
This position is in the oil window of the Eagle Ford formation, and is an area where recent technical improvements have greatly increased oil recovery per well and drilling economics.
Maverick is finalising plans for its initial drilling programme to commence in the fourth quarter of 2016 and extend into the first quarter of 2017.