Jackson Walker successfully represented Stratex Oil & Gas Holdings, Inc. in a Joint Development Agreement with Eagle Oil & Gas Co. and Eagle Dodge City Partners, LP involving 35,000 acres in the Mississippian Lime, a significant shale play on the border of Kansas and Oklahoma.
Under to the agreement, which was announced on Sept. 12, 2014, Stratex may earn up to a 50% working interest in approximately 35,000 leasehold acres in Ford County, Kansas. As operator, Eagle will initially drill four wells targeting the Mississippian Lime. Stratex has agreed to pay 75% of the estimated drilling and completion costs of these four initial wells, in return for a 50% working interest. Subsequently, Stratex may elect to participate in the drilling of additional wells. The agreement also established an area of mutual interest in Ford County pursuant to which Stratex and Eagle have each agreed to permit the other party to acquire an undivided working interest in new leases.
Stratex was represented by Jackson Walker attorneys Mike Pearson, Nate Smithson, and Anna Irion. The successful transaction demonstrates the strength of Jackson Walker’s Energy practice group, which has been a leader in energy law for more than 100 years. The firm has particular experience in the area of shale oil and shale gas development, providing experience to clients engaged in shale plays across North America.