Western Australia-based oil and gas company Titan Energy has expanded its exploration portfolio by entering into a deal to farm-in for an 87.5% stake in the oil producing Allen Dome prospect in Texas, US.
The company has also availed its farm-in option for the 87.5% Allen Dome working interest (WI) and had paid a further $140,000, following positive reviews of re-processed 3D seismic and other data which confirmed potential drilling targets.
Titan will begin drilling a three-well programme on the leases within the prospect in the third quarter of 2012.
The company has also finalized two more deals, and acquired an 81% stake in the Franklin Prospect area of Midyett South Development Project in Illinois for $96,000.
The other deal involved the purchase of a 40% interest in the 1,360 acre Sodbuster Prospect in Logan County, Colorado.
In the Illinois prospect, Titan acquired interest in the exploration well Midyett #8-1 which confirmed the target Aux Vases zone and lower St. Louis Limestone when drilled to a total depth of 3,500ft.
The company said it will gain 1,360 acres of Sodbuster Prospect for an initial payment of $75,000, and will have to meet 50% of drilling costs and complete an initial well to test the J Sandstone Formation at 5,000 feet for $237,000.
As per the deal, Titan would drill about nine follow-up wells on the prospect and participate for 40% in all subsequent wells drilled in the acreage. It will acquire 40% in any areas of mutual interest (AMIs) acquired in the prospect.
Titan has committed to raise A$2.33m during the quarter and laid plans to begin a drilling program in two locations of the Perth Basin permit DR11 in the third quarter of 2011, after a recent survey identified the potential of the area.
Negotiations are underway with AWE for a proposed JV well in Perth Basin permit EP455.
Titan Energy managing director Stephen Thomas said the March Quarter was a company-changing period.
"We are also looking forward to progressing exploration activities in our Perth Basin assets," Thomas added.
"We expect interest in those assets to increase as industry activity in the Perth Basin is growing significantly following the decision of Western Australia’s Minister of the Environment, Bill Marmion, to reject appeals against Hydraulic Fracture Stimulation and the drilling programs for four separate wells in the onshore Perth Basin."