88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) recently confirmed the successful procurement of supplementary oil and gas production resources in Texas.
The firm revealed the conclusion of a new acquisition involving non-operating working interest in leases and wells, offering conventional onshore production, along with developing assets within Texas’ Permian Basin.
The acquisition, amounting to US$1.5 million, will be jointly financed by 88 Energy and its associate, Lonestar, with the UK-based corporation contributing US$1.1 million.
The latest oil and gas resources are set to augment the current Project Longhorn domain. 88 Energy has obtained an average net working interest of 45%, while Lonestar, the existing operator of the resources, will maintain the residual interest.
The enterprise is poised to drill two new production wells later this year, projecting an increase in production to a gross of 160-200 barrels of oil (BOE) daily. This is in conjunction with additional work-over plans set for the latter half of the year.
Upon finalizing the drilling and work-overs on the Texan land, including the current production wells, 88 Energy anticipates that the Longhorn project will approach an estimated output of 500 BOE per day by the year-end.
