GulfSlope Energy launches shallow prospect program in the Gulf of Mexico

HOUSTON -- GulfSlope has announced the execution of a letter of intent with a privately held oil and gas company to form a joint venture to generate and drill shallow depth prospects in the Gulf of Mexico. GulfSlope will retain and deploy a supra salt evaluation team consisting of three geoscientists and a manager to identify, evaluate and recommend targets for lease acquisition, farm-in and drilling. GulfSlope will serve as Operator and will be compensated for the management and administration of the Joint Venture as well as reimbursed for direct G&A costs incurred on behalf of the Joint Venture. The Partner will have the right to participate up to 50% in the drilling of the shallow depth prospects generated and developed by the Evaluation Team. Additionally, subject to specific performance criteria, the Partner will be granted an option to participate in the Company's Corvette Prospect on a promoted basis.

"We are excited about the opportunity to be part of this Joint Venture and it represents a natural complement to our existing subsalt exploration program," stated John Seitz, Chairman and CEO of GulfSlope. He added "Our participation in this Joint Venture will allow us to leverage our proprietary reprocessed seismic data by pursuing supra salt prospects that have been overlooked by industry."

The intent is to enter into Definitive Agreements for the Joint Venture on or before Aug. 31, 2019, which will have an initial term of one year, with the option to renew for an additional one year term.