CanTex has entered an Exploration & Development Agreement covering some 17,000 acres of prospective natural gas leasehold in the West Texas Overthrust (WTO) with Slawson Exploration, Inc., Wichita, KS, in partnership with Big Canyon Energy (BCE). The prospect is called the Big Canyon Prospect.

The Agreement covers an initial 17,151 acres to which BCE holds leases and 7,680 to which BCE holds a lease option. Beyond the lease and option coverage, the total Area Of Mutual Interest (AMI) between the parties covers some 89,929 acres. CanTex has the right to participate throughout the AMI based upon CanTex payment of future pro rata drilling and any additional lease/option costs.

Slawson will operate the project, currently holding 45% working interest. BCE et al retains a 39.375% WI, CanTex holding the remaining 15.625% WI. Provisions within the Agreement include fully executed pipeline rights-of-way (13.5 miles) for tie-ins to the natural gas collection, processing and distribution network in the area.

The parties are now reviewing the historical seismic and related data for selection of the first two wildcat drill sites. The parties may propose additional participation by other major and independent operators within the trend.

Tags: CanTex Energy Corporation