First Titan Corp. has signed an oil, gas and minerals option with Mustang Loan Co. for one of Mustang’s properties near Abilene, Texas. The move follows FTTN’s continuing strategic efforts to acquire leases at discounts from companies hard hit by the ongoing oil price downturn.
The field is on the westernmost edge of the Barnett Shale, which is the third most prolific shale oil producing region in Texas, though some analysts have previously speculated the area may actually have the largest producible reserves of any onshore oil and gas field in the continental United States.
“The market is opening up and several exciting opportunities are coming into focus,” said FTTN CEO, Sydney Jim. “This acreage is located in a well-known, prolific play. We expect to find additional properties in the area and want to package them together as part of a larger plan to begin exploration as the price of oil recovers. We will also continue due diligence into other possible acquisitions, notably in the Cline Shale region in west Texas, and in the Bakken Shale in the north central US.”
The deal arrives alongside continued speculations regarding a potential oil price recovery in the near future: a number of industry watchers are forecasting crude prices will shortly start to rise – ranging from a low of US$80 a barrel in 2016, a medium of US$100 a barrel in the near term, to as high as US$130 by 2017.
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/exploration/03122015/fttn-signs-for-north-texas-oil-field-lease-1734/