MDM Permian signs LoI to develop 200 Southern Midland Basin wells

Energy company MDM Permian has formed strategic alliances with Frisco, US-based FireDream Resources and affiliates to jointly develop wells in the Southern Midland Basin.

The companies have signed a letter of intent (LoI) to develop around 200 wells, with MDM Permian serving as their operator.

As part of the LoI, the companies have signed a sales and operating agreement for four wells in Irion County, Texas.

MDM Permian will hold a carried working interest (CWI) in all the projects.

Located in Irion County on the 160-acre Lindley lease, the wells are producing from the Canyon Sands at a depth of 7,000ft with Wolfcamp, Clearfork and San Angelo potential behind pipe.

A re-work programme designed by the company includes updating existing infrastructure and additional perforations to increase oil and gas entry.

MDM Permian noted that it is also obtaining an option for up to four full sections where the Lindley lease is located.

MDM Permian president and CEO Michael Rafael said: “We are excited about these new relationships and the growth they will afford both sides in transactions moving forward.

“Our company is continuing to research the potential for further acquisitions within our 35-square-mile area of interest.

“The overlooked oil and gas reservoirs, as well as the historically low recoveries from these wells, in the Canyon Sands, presents a tremendous opportunity to build reserves and production at a relatively low cost using modern recovery technology.”

MDM Permian intends to start fieldwork within the next few weeks, upon the completion of paperwork and other transfers.