Australian oil and gas company Titan Energy Ltd has signed an agreement to acquire an interest in one of the most sought after new oil prospect areas in the USA.

Titan has signed a Participation Agreement (“agreement”) to farm-in for a 40% Working Interest (WI) in the 1360 acre(1326 net mineral acre) Sodbuster Prospect in Logan County, Colorado, for an initial payment of US$75,000 to cover 50% of lease costs.

Titan will also be required to pay 50% of the cost to drill and complete an initial well within the Prospect area to test the J Sandstone Formation, which is forecast to be located at a Total Vertical Depth (TVD) of 5000 feet (approximately 1524m) to earn a 40% WI. The forecast “dry hole” cost for the well is US$237,000.

Tags: Titan Energy Ltd