Minerals and royalties company Formation Minerals Inc. has entered into a purchase and sale agreement with a private seller to acquire producing mineral interests in the Haynesville Shale.
The assets, in Bienville Parish, Louisiana, currently have three producing oil wells and operated by Aethon Energy Management LLC, which is testing 2-mile to 3-mile laterals for the wells. The asset. Formation said it paid $220,000 in cash for the interests.
“The wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage,” Scott Cox, Formation’s president and CEO, said in the company’s June 27 press release. “We have great confidence both in Aethon as an operator and in these assets, and we look forward to jointly benefiting as they continue to operate and develop the area.”