Start Scientific announced that it has entered into a Farmout Agreement with BPS Operating Services LLC, Jackson, Mississippi. STSC has until April 1, 2015 to tender $500,000 for the first well to be drilled. Production interest includes 40 acres near the new well and the company will earn a 75% working interest before payout, and a 60% working interest post payout. All production facilities, salt water disposal systems, and 33 well bores are currently in place. STSC can drill additional wells for $400,000 each well within 60 days of completion of each drill project. Farmout Agreement copies will be available online via the STSC’s public filings at www.sec.gov on Form 8-K.
The Flora Field in Mississippi’s Madison County was discovered in 1943 and has since then produced more than 7.6 million barrels of oil from the Selma Rock Gas Formation in the Anderson Sand. Known for its very high permeability, the Anderson Sand has porosity ranging from 20% to 26%. Earlier wells drilled by Jordan Exploration, Inc. in 1997 indicate that there is still oil to be recovered in the Anderson Sand including major potential in the Chalk formation.
Chief Executive Officer, Norris R. Harris commented, “We believe the Flora Field is an economical drilling site with the possibility of good revenue for the Company. In this environment of lower oil prices, we must drill, explore, and extract oil at the right operational costs. We anticipate that the Flora Field and partnering with BPS Operating Services will provide this opportunity for us. Our plan is to re-enter and complete the 33 old wells, as well as drill horizontal holes on the top of the structure and testing two zones. We expect the results may justify redeveloping the field with horizontal wells.”
Start Scientific, Inc. is a development-stage oil and gas development, exploration, drilling, and extraction company. The company’s long-term goal is to grow and develop existing oil and gas leasehold interests and acquire new interests within and without the continental United States. In addition, the company plans to acquire interests in older wells that, with the application of newer technologies, may increase production and reserves.
For more information on the company, visit www.startscientificoil.com
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