Maverick Drilling & Exploration Limited has entered into a new joint development agreement with Gulf South Holding, Inc. for the northern portion of the Blue Ridge field in Texas, US. Maverick has received an initial payment of $6.5 million from Gulf South for a 50% interest in the first 13 wells. Gulf South is to participate in up to 32 wells, for up to $16 million.

Under the terms of the agreement, Gulf South has the option to pay $0.5 million for a 50% working interest in each well, which equate to a turnkey drilling and completion cost of $1 million per well. The transaction is expected to commence in January, 2014.