January 9, 2018
Houston-based oil and gas explorer GulfSlope Energy and Texas South Energy have inked a new partnership with Israel-based independent E&P Delek Group to drill in the Gulf of Mexico.
The strategic partnership was settled in an agreement in which a Delek subsidiary acquired rights to a 75% interest in nine drilling prospects in the Gulf’s shallow waters, with estimated recoverable oil and gas equivalent of more than a billion barrels.
Gulfslope gets a 20% record title interest and Texas South gets 5% in each of the nine prospects, with Delek shouldering 90% of the gross costs of each well for startup until test wells reach objective depth.
Delek’s payout drops to 75% responsibility after full depth is reached, with the other two partners carrying pro-rata ownership interest responsibility thereafter, according to the agreement.
Delek will then have opportunity to buy up to 20% of issued and outstanding common stock of each of GulfSlope and Texas South when certain milestones are reached.
Michael Mayell, President and CEO of Texas South and John Seitz, Chairman and CEO of GulfSlope said the partnership “brings together management and technical teams who have enjoyed great success in discovering and developing world class fields.”