Petrosearch Energy Announces Restructured Agreement with Harding Company on the Barnett Shale Project
Tuesday September 5, 1:20 pm ET
HOUSTON--(BUSINESS WIRE)--Sept. 5, 2006--Petrosearch Energy Corporation (OTCBB:PTSG - News) announced today that it has successfully restructured its Amended and Restated Program Agreement with Harding Company regarding Petrosearch's participation in the previously announced Barnett Shale project in the Fort Worth Basin of Texas. Terms of the restructured Agreement have streamlined the complexities of the previous agreement and improved Petrosearch's economic interests in this venture by eliminating the Company's obligation to advance certain future costs on behalf of Harding's interest and provides that Petrosearch will receive a 14 percent "heads up" working interest in all leasing and drilling activities. The Agreement has also amicably resolved previously contested issues leading to the dismissal of the arbitration proceedings.
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Several horizontal wells have been drilled in the Barnett Shale project and are slated for completion and marketing into evacuation facilities upon the finalization by Exxon Mobil Corporation of the evacuation facilities, which are expected to be completed soon. In conjunction with the completion of the evacuation facilities, Petrosearch will continue its discussions with Exxon Mobil Corporation, Harding Company and third party project participants regarding the creation of the integrated venture previously announced which would hold the exploration and production assets as well as the related pipeline assets and activities. The Company anticipates a multi-rig program for the project during 2007 along with further expansion of its lease holdings inside the 5 county, 1.6 million acre Area of Mutual Interest.
Richard Dole, Chairman and CEO of Petrosearch, stated, "This restructuring will facilitate the efforts of the working interest owners to both produce natural gas reserves found to date and to continue an accelerated drilling program for the project. It also benefits the Company directly by substantially reducing the amount of capital that would have been required in the early stages of the project without diminishing the Company's ownership interest. We are in a very attractive part of one of the most prolific natural gas producing basins in the U.S., are aligned with knowledgeable industry partners and have the unique advantage of being able to transport our natural gas production to markets. We expect this project to have a significant impact on our Company in the future."
About Petrosearch
Petrosearch Energy Corporation, a Nevada corporation with executive offices in Houston, Texas, was created by a team of seasoned and successful oil and gas professionals for the purpose of finding and developing oil and gas reserves across the United States. Petrosearch is currently active in Texas, Oklahoma, North Dakota, Louisiana, and Mississippi. For more information please visit www.petrosearch.com.
