New Standard Energy (ASX:NSE) has commenced a formal process to...

New Standard Energy (ASX:NSE) has commenced a formal process to farm-out its Western Australia oil and gas exploration acreage to focus on its production and development assets in the Eagle Ford Shale, Texas.

This is aimed at eliminating any major capital commitment for the Australian projects.

It has mandated Miro Advisers to manage the farm-out of its 100%-owned Southern Canning Project, the Laurel Project in the Canning Basin and the Merlinleigh Project in the onshore Carnarvon Basin.

This follows a negotiated arrangement with ConocoPhillips (NYSE:COP) and PetroChina (HKG: 0857, NYSE:PTR) to resume full ownership of the Southern Canning Project.

The restructure removes the requirement for New Standard to spend more than $10 million to drill a third well to complete Phase 1 of the Southern Canning Joint Venture agreement with ConocoPhillips and PetroChina.

The three projects offer potential farm-in partners to large permit areas totalling 15.6 million acres in three prospective basins.

New Standard is focused on its Atascosa Project, the Eagle Ford shale development project it had secured in early 2014.

It is poised to start a three well program from mid-October that will feature longer laterals and higher proppant concentrations to increase oil production rates.