Lexaria Corp. has announced its participation in its first Tuscaloosa well, targeting deeper oil and gas horizons.
For the first time since commencing oil and gas drilling operations in Mississippi in 2005, Lexaria has taken an interest in a well that is targeting the Tuscaloosa "A" sand at a depth of approximately 12,000 feet. This is, to date, the deepest well that Lexaria has been involved in, in Mississippi.
The well location cannot be specifically disclosed due to reasons of confidentiality. Drilling operations have commenced and are underway.
The prospect is up-dip to an earlier well that produced both oil and gas prior to ceasing production due to down-hole complications. The prospect was developed using 3-D seismic technology and extensively re-worked seismic stratigraphy.
There are six Lower Tuscaloosa oil fields in the area that have each produced over 1 million barrels of oil, with the largest, Liberty Field, having produced over 4.7 million barrels. The largest Lower Tuscaloosa gas field in the area was Thanksgiving field, which produced over 30 billion cu.ft. of gas.
Lexaria is participating in this prospect with a 5.75% BCP (Before Casing Point), reverting to a 4.423% ACP (After Casing Point). Lexaria has historically participated with more risk-averse percentage interests early in the development of a new target, and has historically sought to increase those interests over time, if they meet with geologic and production success.
Lexaria has previously advanced sufficient funds to meet its obligations for the drilling of this well. Should the well be successful, Lexaria will advance additional funds sufficient to meet its well completion obligations.
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