Titan Energy inks US$50M Joint Development Agreement
THE ROADHOUSE BOWSER: Titan Energy (ASX: TTE) has signed a Joint Development Agreement for funding of up to US$50 million.
The deal has been struck with a United States-based oil and gas, energy funding partner and exploration and development company (referred to as the Fund) which Titan said had, in the past two years participated in the drilling and development of 38 Texas Gulf Coast salt dome wells.
Effective immediately, the Fund, has committed up to US$50,000,000 in joint development projects with Titan over the next three years.
This funding is to be based upon Titan completing a pilot project currently underway and meeting the Fund’s performance criteria.
Titan explained the initial pilot project consists of the workover and recompletion of five existing wellbores currently being undertaken at the company’s Allen Dome oil project in Texas and the drilling of five new development tests on Allen Dome to begin in February 2015.
Total initial project commitment exceeds US$5,000,000 subject to ultimate well costs during the project.
A second Titan project, slated for funding by mid-2015, is already being prepared for participation by the Fund.
Titan expects the joint development funds from this program will be available early in the second half of 2015.
Titan is currently completing a number of acquisitions across the US Gulf Coast, which meet the Fund’s criteria for development.
“This agreement is a significant development for the company and will undoubtedly have an ongoing impact on Titans shareholder value,” Titan Energy executive chairman Darren Levy said in the company’s announcement to the Australian Securities Exchange.
“The financial capacity that the Fund provides is huge for a company of our size.
“To have the cash flow to pursue all our planned drilling programs is a game-changer.
“At a time when the majority of oil and gas companies are announcing major reductions in their capital expenditure budgets and drilling plans, we are going significantly the other way.”
Email: info@titanenergy.com.au
Website: www.titanenergy.com.au