Lithium Exploration Group Inc. today announced funding the second and final installment of its joint development agreement with White Top Oil and Gas. LEXG and White Top have entered into a partnership on April 13, 2017 to acquire and develop an oilfield outside of Lake Charles, Louisiana.
With the installment announced today, LEXG and White Top Oil and Gas have in turn completed the acquisition of a purchase option with development rights to a 4000 acre oilfield with 13.6M barrels of oil ranging in depth from 3000 to 12,000 feet. At an approximate current market price of $50 per barrel, the oilfield could produce as much as $700 million in gross revenue.
"We are extremely excited about this project because it gives LEXG a tangible oil asset with existing production and huge potential upside. Our partners at White Top have over 200 years of onshore gulf coast oil and gas experience and much of that is specific to salt dome development," commented CEO Alex Walsh. "The additional benefit is that we now have our own oilfield to perform ongoing validation testing of the SonCav technology, not to mention the economic efficiencies we will enjoy on this oil field project delivered by the SonCav technology."
The final investment announced today, fully funds an updated 100 fold 3d seismic study covering 16 square miles which will assist in the long term in fill drilling program that White Top has in place. LEXG has fully funded the seismic with White Top having the obligation to now raise drilling dollars and initiate the development program.
- On shore gulf coast oil field covering 4000 acres with 4 major producible zones (Miocene, Marg, Cib-Haz, and Hackberry) ranging from 3000 to 12000 feet around a salt dome.
- First production from this field occurred in 1926 with over 32,000,000 barrels produced.
- Former owners include Union of Texas and Burlington Resources (now part of Conoco)
- Burlington Resource performed 3d seismic analysis in 1992 but very few of the target wells from that shoot were actually drilled before they sold it to present owner.
- 54 target wells from existing seismic data.
- Independent geologist was hired to evaluate shallow target wells from seismic and estimated 2,600,000 barrels of producible oil. Deeper targets are significantly larger but need to be de-risked via a new high resolution seismic analysis.