Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Leo Mariani with RBC.
Leo Mariani - RBC
Curious here as to while you got the decision to go out and JV 26,000 acres, you had talked about having a bigger position, roughly 90,000 acres that are prospective, just curious as to how you got the decision to get out there and just do a portion of this versus doing a bigger piece.
Terry Swift
Clearly, we do have a very significant acreage position in South Texas, both for the Olmos and prospectively as well as the Eagle Ford Shale. The Eagle Ford Shale is a homogeneous type of resource play, but even then there are sweet spots in this play and through the drilling programs that are going on now and will go on into the next year, folks are going to find some really nice places to drill out there and some areas that maybe aren’t as good as others. We decided that was strategically important for us to accelerate our drilling in this play and to go into the play with a partner that we thought would bring exceptional technical expertise to us as it had already had been a well respected shale player.
As to why, we ended up with just 26,000 acres, we do want to keep a bunch of it for ourselves. We felt that strategically this was the right type of deal, it worked well with out partner. We’ve got acreage in and around it, that’s a 100%. We got acreage in other parts of the play, that’s a 100% . We are looking forward to with Petrohawk on this 26,000 acres and teaming up with their technical expertise and expanding then expanding beyond this play area where we’ve done the deal.
Leo Mariani - RBC
Okay, are there any other sort of significant terms for JV like maximum or minimum wells that get drilled in a year and this 100% for the 50-50 JV where either of you has a right to propose a well?
Terry Swift
Yes, we each the right to propose a well. There is no minimum or maximum. We do have one obligation well that has to be drilled. We are in the planning mode to begin that well here within the next 30 to 60 days. Each party has a right to propose wells. We spend a lot of time working through the agreement terms on both sides and we think we’ve ended up with a very good agreement.
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