Oil Optimization Signs Farm-in Agreement with Rockstone Petroleum
Oil Optimization has entered into a farm-in agreement with Rockstone Petroleum relating to its 100% owned Block L14‐50 in the north Phetchabun basin of Thailand. Rockstone will have the right to buy up to a 60% working interest in the Block L14-50 by making certain cash payments and funding certain work programs in respect of the Block.
With signing of the agreement, Rockstone will commit to fund a 50km pipeline 2D seismic program to a maximum cost of $750,000, in exchange for earning a 20% working interest in the Block.
Rockstone will also have the option to buy 35% more working interest in the Block in exchange for committing to fund the drilling of a well to a maximum cost of $1,500,000.
Oil Optimization will cover the cost of the seismic program in excess of $750,000 as per the agreement.
Oil Optimization's wholly-owned subsidiary, JSX Energy, through its local branch office in Thailand, will be the initial operator of the Block.
After the completion of the well program, the parties will enter into a joint operating agreement whereby they will agree to share the costs of any further work programs.