Royale Energy expands its interest in the Pradera Fuego project in Ector County, Texas through a farm-out agreement.
The agreement grants Royale a 2.5% working interest, bringing their total non-operated working interest to 7.5% across both producing and non-producing acreage.
This strategic move supports the company's long-term growth and drilling programs.
Development Pipeline Expansion
The Pradera Fuego asset offers a robust pipeline with 39 Barnett drilling locations and 44 Woodford locations, enhancing growth prospects.
New Wells Planned
Royale anticipates drilling four new wells within the next 12 months, further contributing to production and revenue.
Strong Production Numbers
The Pradera Fuego project's current wells collectively produce approximately 3,583 gross BOEPD, with positive results from the recent Irma 1H well.
- The farm-out agreement with Johnny Jordan's entity marks a significant advancement for Royale Energy, adding to its asset portfolio and enhancing operational control.
- The increased working interest provides Royale with more direct involvement in the project's operations and revenue streams, aligning with the company's growth strategy.
The expansion of Royale Energy's interest in the Pradera Fuego project signifies a strategic step towards long-term growth and stability in the oil and gas exploration sector.