Raya Group eyes USA Oil and Gas Area of Interest

THE ROADHOUSE BOWSER: Raya Group (ASX: RYG) has announced the acquisition of oil and gas leases within an identified Area of Interest (AOI), in Oklahoma, USA, is currently underway.

RYG indicated that through its US subsidiaries, it has entered into agreements over approximately 3,200 gross acres under what it described to be  “commercially favourable terms” adding it is targeting 6,400 acres (10 square miles) within the AOI.

The company explained the leases are mainly contiguous and offset existing oil and gas production from multiple stacked pays including the Wilcox Sand and Mississippi Lime, as well as shallower Pennsylvanian aged reservoirs.

Offsetting acreage is currently being developed by NYSE-listed Range Resources Inc., and a number of locally based oil and gas operators.

Infrastructure, including electricity and gas sales lines, is available in the area.

The new leases are being acquired with a 100 per cent Working Interest and an 81.25 per cent Net Revenue Interest with a three year primary term and a two year bonus term.

The company noted it has previously stated it is focused on acquiring acreage with near term revenue possibilities and plans to undertake a low cost vertical well development program.

Website: www.rayagroup.com.au