Start Scientific, Inc. (STSC) Finalizes Terms of Farmout Agreement with Durban Energy, Inc.
Start Scientific announced that it has entered into a Farmout Agreement with Durban Energy, Inc., Jackson, Mississippi. STSC has until July 10, 2015 to begin drilling a new well on the acreage defined in the agreement. Start Scientific receives 100% of the net revenue until payout of all costs, at which time the company will turn over a 25% working interest to Durban and its partners. As of today there is a 30% royalty burden on the leases, which means that before payout the company will have 70% of net revenue and after payout the company will have 52.5% of net revenue. Durban will have 17.5% of net revenue. Remaining calculations on the respective wells will be addressed separately.
The Fayette Field is situated six miles northwest of the town of Fayette and 21 miles northeast of the city of Natchez in Jefferson County, Mississippi. Originally, Humble Oil Company discovered the field in the summer of 1945 with the completion of the No. 1 M. R. Smith. This well was completed in the Lower Tuscaloosa Massive sand, and tested 229 BOPD of 40-degree gravity oil with 2,000 pounds of flowing tubing pressure. The well produced a total of 630,288 BO and 2.3 BCF of gas. The Massive sand is fine grained, ashy and micaceous. Permeability in this sand is suspected to reach 460 millidarcies and porosity averages 28%. The Fayette structure is a simple anticline and covers about 2,500 acres.
Norris R. Harris, Chief Executive Officer commented, “The Fayette Field is one of several projects in Mississippi which we can acquire with low front-end costs because of our relationships there. With lower oil prices we must find opportunities to attract financial partners who are escaping low-return shale drilling programs which are not economical at less than $60 oil.”
Start Scientific is a development-stage oil and gas development, exploration, drilling, and extraction company. The company’s long-term business model points to growing and developing existing oil and gas leasehold interests and acquiring new interests within and outside the continental United States. Additionally, STSC plans to acquire interests in older wells that, with the application of newer technologies, may increase production and reserves.
For more information on the company, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
Start Scientific announced that it has entered into a Farmout Agreement with Durban Energy, Inc., Jackson, Mississippi. STSC has until July 10, 2015 to begin drilling a new well on the acreage defined in the agreement. Start Scientific receives 100% of the net revenue until payout of all costs, at which time the company will turn over a 25% working interest to Durban and its partners. As of today there is a 30% royalty burden on the leases, which means that before payout the company will have 70% of net revenue and after payout the company will have 52.5% of net revenue. Durban will have 17.5% of net revenue. Remaining calculations on the respective wells will be addressed separately.
The Fayette Field is situated six miles northwest of the town of Fayette and 21 miles northeast of the city of Natchez in Jefferson County, Mississippi. Originally, Humble Oil Company discovered the field in the summer of 1945 with the completion of the No. 1 M. R. Smith. This well was completed in the Lower Tuscaloosa Massive sand, and tested 229 BOPD of 40-degree gravity oil with 2,000 pounds of flowing tubing pressure. The well produced a total of 630,288 BO and 2.3 BCF of gas. The Massive sand is fine grained, ashy and micaceous. Permeability in this sand is suspected to reach 460 millidarcies and porosity averages 28%. The Fayette structure is a simple anticline and covers about 2,500 acres.
Norris R. Harris, Chief Executive Officer commented, “The Fayette Field is one of several projects in Mississippi which we can acquire with low front-end costs because of our relationships there. With lower oil prices we must find opportunities to attract financial partners who are escaping low-return shale drilling programs which are not economical at less than $60 oil.”
Start Scientific is a development-stage oil and gas development, exploration, drilling, and extraction company. The company’s long-term business model points to growing and developing existing oil and gas leasehold interests and acquiring new interests within and outside the continental United States. Additionally, STSC plans to acquire interests in older wells that, with the application of newer technologies, may increase production and reserves.
For more information on the company, visit www.startscientificoil.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
