The test well is considered a high-impact opportunity for Tajzha, and the budgeted cost of Tajzha's share of drilling and casing costs is $320,000.
Drilling and evaluation of the well is expected to take up to 45 days.
By participating in the test well, Tajzha will earn a 10% working interest in the exploration block consisting of approximately five sections of land. Tajzha will pay 11.67% of the costs of the test well to earn a 10% working interest in the well. Any subsequent wells in the exploration block will be on a straight-up working interest basis. Tajzha has the opportunity to participate in four additional exploration blocks on the same terms as the initial exploration block. These four additional blocks consist of approximately three, three, six and six sections of land. Tajzha must participate in the first well on each option block to earn into the land in that block.
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