Torchlight Energy Resources reported that the company has signed an agreement to farm into an oil and gas prospect in the United States. The company believes that there are commercial quantities of natural gas and condensate present on the property.
Torchlight Energy Resources said that the farm in agreement was executed with La Sal Energy LLC, and covers a 940 acre block located in Waller County, Texas. The company is required to provide funds to re-enter an existing well on the property. The well will undergo hydraulic fracturing operations and be completed to the Sparks formation.
Torchlight Energy Resources will earn a 40% working interest in the block under the farm in agreement and can increase the company’s working interest by an additional 5% after the well is completed. The prospect has one additional well reentry location.
The company said that the prospect is located nearby the Katy Field, which was discovered in the 1960’s by Exxon Mobil. The Katy Field contains an estimated six trillion cubic feet of natural gas.
Torchlight Energy Resources is active in other areas of Texas and recently announced the successful results of an oil well in Wilson County. The well produced approximately 100 barrels of oil per day.
You can view more information on the company’s website at www.torchlightenergy.com
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