Prime Rock Resources and New Dawn Energy are partnering to develop assets contributed by each company in central Louisiana, targeting the Austin Chalk play, Kallanish Energy reports.
The development area covers roughly 120,000 net acres in Allen, Avoyelles, Beauregard, Rapides and Vernon parishes, primarily in the Masters Creek Field.
As part of the agreement, Prime Rock and New Dawn have established an area of mutual interest in which the companies will work together to jointly acquire additional acreage. The parties expect initial development under the agreement to begin during the fourth quarter of 2019.
“Prime Rock is pleased to partner with New Dawn in Masters Creek,” said Manny Sirgo, president and CEO of Prime Rock Resources. “We are excited about the potential benefits of applying modern drilling and completion technology in one of the most prolific legacy Austin Chalk fields in the entire trend.”
“New Dawn is excited to be partnering with Prime Rock, a proven operator with a track record of safe, profitable and successful operations,” said Ghasem Bayat, New Dawn’s executive vice president.
Prime Rock was founded in April 2017 by Sirgo and former members of the Endurance Resources management team, with equity commitments from private equity firm Lime Rock Partners and management.
New Dawn Energy is a privately-owned oil and gas exploration and production company focused on acquiring and developing operated and non-operated assets in major basins in the U.S.
The independent producer, through its acquisition of LaBokay Natural Resources in 2017, owns over 270,000 net acres of mineral servitudes in the western parishes of Louisiana, including more than 150,000 net acres in the Austin Chalk.
Mineral servitude is the right conveyed by a landowner to produce minerals by another. In Louisiana, the owner of land generally owns only the right to produce minerals underneath the land.
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