FieldPoint and Riley sign agreement for exploration project in Texas

FieldPoint Petroleum has entered into an agreement with Riley Exploration Group for an exploration project in Lee and Bastrop counties, Texas.

By pooling up their interests within geographical boundaries of the Serbin field located in Lee and Bastrop Counties, the companies plan to drill up to 12 horizontal wells in 2014.

Under the terms of the agreement, the companies will also share expenses and revenues on a pro rata basis determined by the contributed lease acreage they own.

According to FieldPoint, the sharing will result in FieldPoint owning about 25% interest and Riley holding the remaining 75%.

FieldPoint executive chairman Roger Bryant said the Serbin Field is the place where the company’s founder Ray Reaves acquired his first leases leading to the formation of the company.

"It is only fitting that this be the site of FieldPoint’s largest project to date. We are very anxious to get underway in January," Bryant added.

The joint exploration agreement calls for the relationship between the companies to be exclusive within the AMI for a period of five years.

The existing vertical wells will be revitalised as part of the plans, which could result in significant increases in production.

The companies are yet to determine the total number of horizontal wells to be drilled over the life of the agreement.

FieldPoint CFO/COO Phillip Roberson said: "Riley has a great management team and track record, along with a highly skilled and experienced staff. We have developed a lot of confidence, and trust, in them as we have worked through the details of this agreement over the past several months."

FieldPoint is engaged in oil and natural gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas and Wyoming.

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Image: FieldPoint and Riley plan to drill up to 12 horizontal wells in 2014. Photo: courtesy of Guitar guy