Amadeus told the ASX today that its Texas-based subsidiary Amadeus Petroleum Incorporated had successfully bid for the Ford East field in Reeves County, West Texas – the company’s second successful acquisition of US producing assets in the past month.
Amadeus has funded 92% of the deal to earn an 82% working interest (net revenue interest of 61.5%) in Ford East, which is operated by Wichita Falls-based TNT Engineering Inc and its senior petroleum engineers.
Ford East, in the Delaware Basin, consists of 13 producing wells at depths of up to 1000m. Current net monthly production is 3700 barrels of oil and 2000 thousand cubic feet of gas, bringing in net operating income exceeding US$200,000. By value, the output is 90% oil and 10% gas.
Proved, developed producing (PDP) reserves acquired totalled about 500,000 barrels of oil and 0.2 bcf of gas, with considerable upside potential in several areas.
About 840 million barrels of oil equivalent (boe) of proved undeveloped reserves (PUD) was anticipated from a development drilling program at 12 sites in the field. The first of five wells to be drilled this month, Red Bluff 16-2, had already started.
A “step out” program could yield a further 740 boe of probable reserves, while a further 155 million boe was possible from seven locations offsetting the PUD and PRB locations – bringing the total potential for these three categories to 1.735 billion boe.
Company secretary Caroline Bentley said the latest deal further reinforced Amadeus’ policy of focusing on a balance of acquiring producing assets and drilling exploration activities in the US.
Last month Amadeus successfully bid on a $US20 million oil and gas acquisition deal involving 26 leases in Stephens and Shackelford Counties, Texas, with a total of 33 (27 gas and 6 oil) producer wells.
