Horizon's initial due diligence on Cherokee County oil and gas lease suggests potential
- The agreement is with Ponta E&P LLP, a Texas partnership involved in oil and gas exploration and production in the area.
Horizon Energy Corporation (OTCQB: HORI) announces its initial due diligence is favorable and it will soon be ready to move forward with final negotiations on its option agreement for leases known as the Holmes Oil Unit Number 1 in the East Texas counties of Cherokee and Rusk. The agreement is with Ponta E&P LLP, a Texas partnership involved in oil and gas exploration and production in the area.
The land under consideration, 83 acres located in the Pettit formation close to the town of Rusk, the Cherokee county seat, is the second project in Horizon's ongoing efforts to identify prospective opportunities for the exploration, development and production of domestic oil and gas.
Earlier this year, Apache Corporation (NYSE:APA) identified East Texas and Louisiana as areas of interest in its quest for the next big find. Throughout East Texas, producers such as Anadarko Petroleum Corporation (NYSE:APC) and EOG Resources, Inc. are returning to fields that were considered played out and applying new technology. This mirrors initial activities in the Permian basin on the state's western side, where producers revisited previously drilled fields, successfully employing horizontal drilling and hydraulic fracturing.
'Oil companies are vying to establish new fields in light of rapidly declining output in some areas, and East Texas, which gave birth to the modern oil age, is an excellent prospect,' said Robert Bludorn, President and CEO of Horizon Energy Corporation. He added, 'Our initial research is showing a geology in Cherokee County that validates a renewed drilling program.'
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