California-based Kabe Exploration Inc. entered into a letter of intent to form a joint venture partnership with Canadian energy holding company International Equity Partners Oil and Gas, Inc. The announcement of the letter of intent was announced June 10.
The letter of intent for the joint venture is to explore and develop 7,300 acres of oil leases in the Mississippian field in southern Kansas. International Equity Partners will contribute funding and expertise for developing the field's assets for production.
Kabe holds a five-year operational plan in the field and is expected to bring 24 new oil wells into production through the venture.
Each of the wells in the Mississippian are estimated to hold 400,000 barrels of oil with a total of 9,600,000 barrels of oil over the project's lifetime. Exploration in the field could yield more than $1 billion in profits with today's oil prices.
Visit PennEnergy's research area to learn more about crude oil production potential in the United States.