MDM Permian, FireDream form alliance on 200 Permian shale wells

By MDM Permian | October 21, 2019

MDM Permian Inc. has formed a strategic alliances with Frisco, Texas-based FireDream Resources LLC and affiliates.

“We are excited about these new relationships and the growth they will afford both sides in transactions moving forward,” said Michael Rafael, President and CEO of MDM Permian. MDM is a publically traded energy company that invests in oil and gas wells throughout West Texas.

The companies have signed an LOI to jointly develop up to 200 wells in the Southern Midland Basin with MDM Permian as the prospect generator and operator. The LOI kicks off with the companies having entered into a sales and operating agreement for 4 wells in Irion County, Texas. MDM Permian will retain a carried working interest (CWI) in all the projects.

The wells are located in Irion County on the 160-acre Lindley lease, producing from the Canyon Sands at an approximate depth of 7,000 feet with both Wolfcamp, Clearfork and San Angelo potential behind pipe. MDM Permian has designed a re-work program that includes updating existing infrastructure, additional perforations to increase oil and gas entry, chemical programs, and acid jobs. The company is also obtaining an option for up to four full sections where the Lindley lease is located.

MDM Permian is also negotiating the acquisition of an additional 16 wells, with associated HBP acreage, all in the immediate area. These wells are also currently producing from Canyon Sands. “Our company is continuing to research the potential for further acquisitions within our 35 square mile area of interest,” Rafeal said, adding that, “The overlooked oil and gas reservoirs, as well as the historically low recoveries from these wells, in the Canyon Sands, presents a tremendous opportunity to build reserves and production at a relatively low cost using modern recovery technology.” The company plans to begin work in the field within the next few weeks as paperwork and transfers are completed.