Danick Resources, Inc. announced today that an acreage swap with American Energy Partners, LP. has been finalized. The oil and gas lease swap involves specific acreage in Lincoln County, Oklahoma where AEP has assigned Danick all rights from the base of the Red Fork sands and shallower. Danick assigns AEP all rights from the base of the Red Fork sands and deeper. This enables AEP to continue to focus on its Woodford shale play. Danick's exploration strategy focuses on conventional plays, drilling direct offsets to established, proven and currently producing oil and gas wells.
'This is a great move for both companies,' commented Daniel Lane, President of Danick Resources on Tuesday. 'This arrangement enables Danick to focus on more economically sound drilling programs in one of the most historic and profitable oil fields in Oklahoma, while maintaining the leaseholds for both companies through our production. With oil prices below $60, Danick will remain profitable by focusing on drilling vertical wells with high volume production characteristics as seen in more costly horizontal wells.'