U.S. independent GulfSlope Energy has formed a joint venture with a privately held oil and gas company to generate and drill shallow depth prospects in the Gulf of Mexico.
GulfSlope will retain and deploy a supra salt evaluation team consisting of three geoscientists and a manager to identify, evaluate and recommend targets for lease acquisition, farm-in and drilling.
The firm said in a press release that it will serve as operator and will be compensated for the management and administration of the JV as well as reimbursed for direct G&A costs incurred on behalf of the JV. The partner will have the right to participate up to 50 per cent in the drilling of the shallow depth prospects generated and developed by the team.
"We are excited about the opportunity to be part of this Joint Venture and it represents a natural complement to our existing subsalt exploration program," stated John Seitz, Chairman and CEO of GulfSlope. He added "Our participation in this Joint Venture will allow us to leverage our proprietary reprocessed seismic data by pursuing supra salt prospects that have been overlooked by industry."
The aim is for both firms to enter into a definitive agreement for the Joint Venture on or before August 31, 2019, which will have an initial term of one year, with the option to renew for an additional one year term.