Armada Oil Inc., an emerging independent oil and gas company, has entered into an agreement with a wholly owned subsidiary of Anadarko Petroleum Corp.(NYSE: APC), allowing Armada to 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 in the Niobrara 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 CEO. "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.
Armada Oil’s original 26,000-plus acre Niobrara project is situated near existing infrastructure in Carbon County, Wyoming.