Archer Petroleum has signed a Letter of Intent (LOI) to work with Cardiff Energy on a three-well drilling program in Texas.
The firm will earn a 25% working interest on the production rates of 180 barrels a day and 250,000 cubic cubic feet of gas on the Bearcat 4 well in Ballinger.
The program will be located in Cardiff Energy’s 468 acre leasehold, with completion expected by December 14.
Colin Bowkett, president of Archer Petroleum, said: “We have been following Cardiff’s progress with their Ballinger property with keen interest and believe that the 180 barrel per day initial production from their Bearcat #4 well shows excellent potential for a strong multizone play, which we intend to be a part of.
“We look forward to completing our due diligence and moving towards a definitive agreement as soon as is feasible.”