Armada Oil, Inc.an emerging independent oil and gas company, is pleased to announce the Company has entered into an agreement with a wholly owned subsidiary of Anadarko Petroleum Corporation, allowing Armada to significantly broaden its flagship Niobrara project in Southern Wyoming. Under terms of the agreement, which covers more than 8,200 acres, Armada has the ability to earn oil and gas leases by drilling wells and establishing production.
"We are excited about this opportunity in the Niobrara project., and we look forward to unlocking what we feel is significant potential in the area." said James J. Cerna, President and Chief Executive Officer. "We believe this asset is especially distinctive because of the unique geology in the area as well as the ability to use new drilling and completion technologies."
The agreement further allows for seismic data sharing, whereby Armada will provide Anadarko the results of the data acquired from the 3-D seismic shoot that is currently underway.
Armada has committed to drill its initial well on or before August 1, 2013. The terms of the agreement also provide for a continuous drilling option, whereby vertical wells may be drilled every 120 days and horizontal wells drilled every 180 days.
Strategically situated near existing infrastructure in Carbon County, Wyoming, Armada Oil's original 26,000-plus acre Niobrara project is in a region where the emergence of new drilling technologies has spurred heightened activity and growing appeal. Renewed interest in the Niobrara was sparked in 2009 when horizontal drilling and new completion technologies made possible this large resource discovery. Since 2009, these same technologies have been continually optimized to increase the reserve potential, as evidenced by public announcements from numerous major producers.