GulfSlope Energy and Texas South Energy have jointly executed an exclusive letter of intent (LOI) with a large international oil and gas company to drill and develop a minimum of three wildcats in the Gulf of Mexico.
The deal comes with the option to participate in additional three-well phases.
The unnamed partner will earn a 75% working interest in each prospect by paying 90% of the exploratory costs, and making a cash payment of US $1.5 million to be split between the JV of GulfSlope and Texas South Energy on a 73%/27% basis.
GulfSlope will be the initial operator and will retain a 20% working interest for the subsalt prospects included in the first phase;
Texas South will retain a 5% working interested for the subsalt prospects included in the first phase.
"We and Texas South are looking forward to working with our new partner, who is a highly accomplished oil and gas company with a great track record of finding and developing substantial oil and gas resources in offshore areas,” John N. Seitz, chairman and CEO of GulfSlope said. “Their technical capabilities have enabled them to recognize a unique opportunity, one where the seismic and drilling technologies have converged with today's lower costs of drilling with jackup rigs and development of large scale reserve targets with fixed platforms in shallow water."