Farminee, Carpenter & Sons and North Finn, will earn its 81% net revenue interest in half of the lease by acting as operator to drill one well in the lease before the end of October.
Upon completion of a second well, C&S-NF would earn the same net revenue interest in the remainder of the Oriva Federal lease.
Under the deal, Planet said it would retain a 19% interest in the non-CSM rights of the lease, including a 14.5% of royalties. In addition, the company will retain a 4.5% net revenue interest, which it may convert to a 20% working interest.
If this conversion goes ahead, the royalties would be shared proportionately according to each partners’ working interest.
The farm-in well will primarily target the Cretaceous Muddy Formation at a depth of about 2900m, with overlying Cretaceous-aged fractured shales as secondary objectives.
The Oriva Federal leasehold, which is located about 21km west of the township of Gillette in Wyoming, totals 359 net hectares (887 acres) in Sections 8, 9 and 10, Township 50 North, Range 74 West, Campbell County.
