In April 2012, the Company announced that through its wholly-owned subsidiary, Contaro Company, it had entered into a Limited Liability Company Agreement (the "LLC Agreement") in connection with the formation of Exaro Energy III LLC ("Exaro"). Pursuant to the LLC Agreement, the Company has committed to invest up to $67.5 million in cash in Exaro over the next five years together with other parties for an aggregate commitment of $182.5 million, or a 37% ownership interest in Exaro.
Exaro has entered into an Earning and Development Agreement with Encana Oil & Gas (USA) Inc. ("Encana") to provide funding of up to $380 million to continue the development drilling program in a defined area of Encana's Jonah field asset located in Sublette County, Wyoming. This funding will be comprised of the $182.5 million investment described above, debt, and cash flow from operations. Encana will continue to be the operator of the field and upon investing the full amount of the $380 million, Exaro will have earned 32.5% of Encana's working interest in a defined joint venture area that comprises approximately 5,760 gross acres.
As of December 31, 2013, the Exaro-Encana venture had 83 new wells on production, producing at a rate of approximately 38 Mmcfed, net to Exaro, plus an additional 14 wells that were either in the completion or fracture-stimulation phase. We continue to have three drilling rigs running on this project.