Evolution has entered into a Joint Venture Agreement (JVA) to develop the Mississippian Lime formation in 38 sections covering more than 24,000 gross acres in Kay County, Oklahoma. Through forced pooling, the 11,700 net acres held by the JVA potentially could be expanded by a portion of the remaining gross acres within the sections. Evolution is contributing upfront cash and a drilling carry to earn its 45% non-operated share of the joint venture. Because the partners in the JVA are in advanced discussions with landholders to add acreage, no financial terms were disclosed.
The joint venture partner is a private company based in Oklahoma with particular focus on the Mississippian Lime formation. The partner will be the operator of the joint venture and is contributing the leases, its portion of the drilling capital and its operating expertise in the area and the Mississippian Lime play.