Under the agreement Avanti will earn half of Emerald's working interest in each well drilled by paying 100% of the drilling, completion and hook-up costs of the wells.
Emerald will provide technical expertise, developmental acreage and will manage all aspects of the project.
Last week, Emerald announced a drilling and operating agreement with P&J Resources for a 90,000-acre gas development project in eastern Kentucky and West Virginia.
According to Emerald, more than 2000 wells could be drilled on the leases.
The MOU is expected to be finalised in 60 days.
