Jayhawk Energy, Inc. entered into a Farmout Agreement with Vast Petroleum, Corporation (Vast Petroleum) covering Jayhawk's natural gas pipeline and adjacent natural gas wells in Crawford and Bourbon County, Kansas.
Jayhawk Energy CEO Kelly Stopher said, "We have been working diligently to attract a strong technical partner who understands the potential upside contained within the Jayhawk asset base. The successful closing of this Farm-out Agreement provides the Company with the local presence necessary to operate the field efficiently and effectively. Vast provides the boots on the ground personnel needed to optimize the Company's gas production levels. With natural gas prices strengthening, the Farmout Agreement with Vast will allow Jayhawk to resume ongoing production from 32 wells along its 17 mile pipeline for the first time in 24 months. Vast will also evaluate additional potential sites in acreage within reasonable proximity to the entire length of the pipeline. As well, we are also looking forward to their evaluation of potential oil production in the region and a long-term relationship with Vast Petroleum."