PERTH-based TTE Petroleum Ltd and its new Joint Venture partner Viceroy Petroleum LP have commenced a workover programme on Allen Salt Dome and announced plans for a drilling programme before the end of this calendar year.
The initial programme consists of the workover and recompletion of four existing wellbores and further investigation of the gas sales potential and the drilling of the three new wells.
TTE has granted Viceroy the right, at its option, to purchase TTE’s 30% working interest (WI) in Allen Dome, between the dates of August 1, 2017, and October 31, 2017.
TTE recently signed a Letter of Intent with Viceroy Petroleum LP under which Viceroy will assume operatorship and acquire a 75% WI in the Blue Ridge field located in Fort Bend County, Texas. TTE will retain a 25% WI as well as an Overriding Royalty Interest.
Upon execution of the LOI Viceroy paid TTE US$20,000.
The companies are now progressing towards the signing of a full Purchase and Sale Agreement. Upon the signing of that agreement Viceroy will pay TTE US$200,000.00, less the initial $20,000 fee.
As an additional consideration Viceroy agrees to carry TTE on up to an initial five new wells to casing point for its working interest portion within 12 months after the effective date of the agreement.
TTE acquired 361 net acres on the Blue Ridge salt dome in October 2015 after a successful negotiation with OXY USA, Inc. The acreage, known as the Occidental Fee lease, represents a significant portion of the south-western corner of the Blue Ridge field in Fort Bend County, Texas, approximately 20 miles south of Houston.