Green Oil owns the rights to drill and re-enter a prospect known as Gates 1-14 in Hughes County.
Gates 1-14 is planned as a direct offset to a key well, Warren 1-14, that produced 400,000 mcf of natural gas before down-hole mechanical problems and water ingress impeded the flow.
As per the option agreement, both companies have to conduct due diligence towards a possible definitive agreement in one month.
The Gates prospect in the Warren oil and gas field proved production in several different formations and showed significant returns.
First Titan has cited a petroleum geologist’s report on the prospect which estimated that Gates 1-14 could contain 200,000 barrels of oil or gas equivalent recoverable in place.
First Titan has already acquired drilling assets in Texas and Louisiana, and if the company acquires a working interest in the well, it would be the third such drilling project.
