Lone Star Energy Limited, via it’s wholly-owned subsidiary LS Operating Pty Ltd, has entered into a Letter Agreement with BRK Oklahoma Holdings, LLC by which it will be referred opportunities to assess and undertake potential future conventional well bore drilling and or acreage acquisition opportunities. Based on discussions with BRK Oklahoma, Lone Star anticipates receiving many such referrals of opportunities.


The first opportunity presented was the Texas Panhandle Greever Prospect. The Greever Prospect is a conventional horizontal drilling opportunity in the Marmaton Formation in the Hansford Oil and Gas Field in Hansford County, Texas, USA, approximately 96 miles north of Amarillio. The Hansford Field is described as a significant field (>1,000 Billion cubic feet (Bcf) of gas) with over 50 years of exploitation. An initial horizontal well bore was spud in July 2017. The well is offsetting a recent successfully drilled (producing) horizontal well and is adjacent to an analogous field with five recently drilled horizontal Marmaton Formation producing wells.

The Greever Prospect has now been drilled, successfully completed and is currently flowing back to sales.


The second opportunity presented to the Company is the Burgess Prospect, located in Ellis County, Oklahoma, USA. The Burgess Prospect, NE/4 28-24N-23W Ellis County, Oklahoma, proposes to target Morrow sands at an approximate depth of 7,850 ft.  These Morrow sands are known to produce commercial quantities of natural gas from vertical wells within section 28 and adjacent sections.  LS Operating has agreed to participate for up to a 100% working interest (with a 75% net revenue interest) in the drilling of the Burgess well. The well is set to spud in late November 2017 and is expected to take approximately 4 weeks to drill.