- Xstate Resources will acquire a 25 working interest by funding a 33 interest in an onshore exploration project in Texas
- The two high impact wells to be drilled [early Q3 2019] will target large 3D defined structures with multiple reservoir objectives nearby existing oil fields.
Xstate Resources Limited has entered into a Binding Farm-In Agreement with Mosman Oil & Gas Ltd to acquire a working interest in the Champion Project Area in Texas.
Xstate may earn a 25 per cent interest by funding 33.33 per cent of a planned two well program, up to an agreed cost “cap”. It will cost Xstate approximately US$400,000 which will be funded from existing cash reserves.
Drilling oat the first well is expected to begin early in third quarter 2019, and is targeting 1.9 billion cubic feet of gross mean resource potential. The second well is planned for late 2019 and is targeting 357 thousand barrels of oil of gross mean resource potential.
The 240-acre Champion Project has several drilling locations identified using the same 3D seismic. It comprises the Galaxie and Falcon wells and a potential further four prospects and leads defined by the 3D seismic.
The Company holds working interests in small projects in California however, activity is currently at a halt for both projects. Therefore validating the Company’s interest in the near-term drilling activity at the Champion Project.