Titan Energy increases US acreage
THE ROADHOUSE BOWSER: Titan Energy (ASX: TTE) has increased its acreage in the Gulf Coast of the United States.
The company announced it has acquired 850 net acres (1724 gross acres) on the south-western flank of Boling Dome, southwest of Houston, Texas.
According to Titan, in the late 1920’s, Texaco drilled a number of wells on the acquired acreage followed by a group of independent operators throughout the 1980’s.
Titan said it considers these tracts hold considerable in-field development within the proven trends on the property.
Target depths range from 3,500 feet to 7,500 feet in the Miocene and Frio sand formations.
The company is completing a comprehensive geological review, after which it expects further information will be disclosed.
Titan holds a 100 per cent working Interest in the primary tracts where previous development had occurred.
The company has also increased its acreage holdings on Allen Dome, where it now holds 1085 net acres (1642 gross acres).
The expansion has primarily come in the form of an additional 314 acres acquired on the eastern flank of the dome beyond the existing Perry Ranch property.
Titan explained the decision to acquire the latest acreage was based upon reprocessing and interpretation of both 3D and 2D seismic in conjunction with enhanced data assembly and review.
Target formations identified in the review range in depth from 3,500 to 8,000 feet.
Titan has also acquired several leases throughout in-field areas of the dome, as well as increasing from a 94 per cent to a 100 per cent working Interest on Allen Dome North.
The acquisitions have doubled Titan’s salt dome holdings as well as expanded its portfolio across two proven salt domes.
The company outlined the objective of this expansion to be to build an inventory of proven in-field locations for future development, both by Titan in its own right and through a recently announced US$50 million Joint Development Agreement.
Titan indicated its first step will be to conduct several pilot tests within the proven trends to evaluate oil potential and undeveloped zones.
It is expected that this process will begin within the next three to six months.
“We announced at the beginning of 2015 that expanding our acreage within Allen dome and in other prospective fields was one of our primary goals and we have delivered,” Titan Energy managing director Paul Garner said in the company’s announcement to the Australian Securities Exchange.
“The current downturn in oil pricing has provided a small growing company like ours with opportunities to pick up these tracts on highly favourable prices and terms.
“We have a lot of work ahead of us, but we have the capital and the expertise to start exploring some wonderful tracts with very exciting potential.”
Email: info@titanenergy.com.au
Website: www.titanenergy.com.au