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Petro River Announces Change in Pearsonia West Concession Requirements From Horizontal Well Obligations to Vertical Well Obligations
Petro River Announces Change in Pearsonia West Concession Requirements From Horizontal Well Obligations to Vertical Well Obligations.
About this update from Petro River Oil Corporation
[{"type":"text","content":"\n \n \n Petro River Announces Change in Pearsonia West Concession Requirements From Horizontal Well Obligations to Vertical Well Obligations\n \n \nPetro River Announces Change in Pearsonia West Concession Requirements From Horizontal Well Obligations to Vertical Well Obligations\n\nComplements Petro River's Recently Announced Vertical Drilling Program\n\n \n HOUSTON, TX--(Marketwired - May 27, 2015) - Petro River Oil Corp (OTCQB: PTRC) (\"Petro River\" or the \"Company\") announces that, on May 20, 2015, by a unanimous vote 8-0, the Osage Mineral Council approved the newly agreed upon terms and conditions for the Pearsonia West Concession (\"Pearsonia West\"), a 106,500 contiguous acre position in Osage County, Oklahoma, held by Spyglass Energy Group LLC. Petro River owns a controlling interest in Pearsonia West through its investment in Bandolier Energy LLC, whole owner of Spyglass Energy Group LLC. The new concession terms and conditions allow for vertical drilling obligations to hold the concession which previously had horizontal drilling obligations. This announcement coincides with Petro River's recently announced intention to develop the concession vertically which, historically, has produced attractive return profiles in the region. \n Shane Matson commented, \"The new terms are fundamental in enabling Pearsonia to be developed by drilling vertical wells going forward which we believe is optimal. We have twelve seismically defined structures ranging from 100 acres to in excess of 1000 acres in closure, each of which have stacked pay that includes regionally extensive Arbuckle, Mississippian, and Marmaton carbonates, all ideal candidates for vertical development. This change creates immense value for the concession since vertical obligations are less expensive than horizontal obligations.\"\n Osage County is unique relative to other prominent oil and gas producing counties in the Mid-Continent in that the Osage Mineral Estate has in effect a single mineral owner and is managed by Osage Mineral Council. The Osage Mineral Council is responsible for encouraging the development of the Osage Mineral Estate by drilling, seismic acquisition, or other activities that promote oil and gas development in the county. The change in the concession requirements from horizontal to vertical is meaningful as it allows the implem...