The prospect is expected to have over 1.35 million barrels of oil equivalent.
The company paid $48,759 in lease costs for the interest it acquired in the prospect and will pay for the drilling costs on a dry hole basis. The proposed well has an estimated dry hole cost of $1.2m.
Titan Energy managing director Steve Thomas said, "Studies show Greathouse has the potential to contain in excess of 1.35 million barrels of oil equivalent in the Hayes sand alone, which offers us a potentially significant return on our modest investment."
The company will re-drill a proposed well which was previously spud in 2007 known as the Jordan Schultz no.1 but failed to test any key objectives.
The main aim of the new well is to target the Hayes sand from the prospect which was not fully evaluated in the Jordan Schultz well.
The Hayes sand was intersected at 10,542ft total vertical depth in the Jordan Schultz well and the historic drilling indicated the site may contain about 25 feet of potentially productive sands.
Titan Energy has selected a drill site offsetting the Jordan Schultz no.1 well location and joint venture is presently looking for a suitable rig to spud.
The company is also planning to bring a farmout partner into the permit area with a 20% interest and retaining 35% working interest with itself.
Australia based Titan Energy is an oil and gas explorer.
