Gulf Energy Corporation has signed an agreement regarding its offer to purchase a share in an oil and gas field in the state of New Mexico, USA, after long and serious negotiations. The offer includes the purchase of a share in the deep gas development well to be drilled in 2017, and start the development of the field after the completion of the geophysical surveys and the drilling of the first well in the field, to ensure the presence of helium gas reserves in commercial quantities.
Commenting on the project, Mr Chris Tate, Managing Director of Gulf Energy Corporation, said: “The aim of the forthcoming deeper drilling phase is to develop the field, which has been proven to contain sources and reserves of helium gas. The current gas price for crude helium is quite attractive for investment opportunities, if we look to what was published on the Bureau of Land Management website regarding the latest crude helium gas deal sold at auction, during which the bids ranged from $100 to $106 per Mcf. The Managing Director explained that such a deal contributes to the development of the investments of Gulf Energy in a strategic sector that is witnessing a high demand globally.”
The offer includes the acquisition of all rights to exploit the oil, gas and helium reserves in the entire field, including the first well returns, to provide immediate cash flow for Gulf Energy Corporation if the deal is completed.
Under this agreement, Gulf Energy is to be entitled to access to all the operational, accounting and legal files and records, the buildings and property of the company (the seller) and its correspondence with the federal government in New Mexico.
This offer is valid until 31st March 2017, while the value of the deal is determined according to the results of the first well’s tests to be drilled in the second half of 2016, in order to set a purchase and sale agreement between the two parties with a view to complete the deal by the specified date.
The demand for helium gas has increased since 2013 and throughout 2014, and the European markets have suffered for years from a lack of the Algerian gas supplies. Various global markets were affected in varying degrees because of the lack of helium supply and production, thus making the investment in production and manufacturing both useful and promising.
International oil and gas markets experts expect the demand for helium gas to increase with the predicted growth of the electronics industry, semiconductor, LCD screens and fibre optics in Asia and the Middle East