Acquired 10% WI in an offshore oil and gas field, West Cameron 225, located in the shallow waters of the GoM.
West Texas Resources Inc. (OTCQB: WTXR) closes the acquisition of a 10.0167% working interest (7.2120% net revenue interest) in an offshore oil and gas field, known as West Cameron 225, located in the shallow waters of the Gulf of Mexico near Cameron, La.
The West Cameron 225 field has proven reserves of 14.7 billion cubic feet (Bcf) of gas and 2.46 million net equivalent barrels (bbl) or 177,500 net equivalent bbl net to West Texas Resources. The field has two producing wells, the #7 and the D-1, that were previously shut-in and waiting on a sales pipeline connection. The pipeline was recently completed and tested and now the two wells are expected to come online at a combined rate of 3 million cubic feet per day (MMcf/d) or 300 Mcf/d net to the West Texas Resources. The operator presently intends to perform a dual recompletion on the D-1 well early next year, at which time the two wells are expected to produce 7.5 MMcf/d or 750 Mcf/d net to West Texas Resources.
"We are pleased to have closed the West Cameron 225 transaction. We believe that the West Cameron 225 interest, along with the recently acquired Port Hudson interest, provides us with a substantial amount of net reserves and the cash flow from production that should put us close to break-even on a cash flow basis," Stephen Jones, West Texas Resources CEO, said in the release.
West Texas Resources Inc. is a development stage company focused on the acquisition, development, and exploitation of oil and gas properties in North America. The company is based in Frisco, Texas.