Entek Energy Limited has completed a conditional agreement with Colorado-based New Frontier Energy Inc. (NFEI) to earn up to a 55% interest in NFEI’s large exploration and production portfolio in the United States which includes significant production assets and exploration leases located within a highly prospective and expansive area in Colorado and Wyoming, USA.

The farm-in by Entek will be achieved by funding up to a total of US$13.6 million joint operations over a notional 4 year period with expenditure committed directly to increase production and reserves. The offer has been accepted by NFEI and is subject to Entek’s due diligence, Board approval and agreement by the parties of final documentation. Entek has the right to assume Operatorship when the interest earned by Entek exceeds the interest of NFEI.

Entek’s Chief Executive Officer Russell Brimage said, “The farm-in agreement earns Entek a significant interest in production, certified reserves, infrastructure and exploration leases, and represents a significant step forward in the development of our US oil and gas business. The agreement enables Entek to add long life reserves to its existing high productivity Outer Continental Shelf reserves in the Gulf of Mexico, effectively doubling its reserve base from 20 BCFE 2P Reserves, held within its High Island 24 Field and Main Pass 252 block in the Gulf of Mexico, to around 43 BCFE 2P Reserves.”

Tags: Entek Energy Limited, New Frontier Energy