Rising oil and gas energy company First Titan Corp. (OTCBB: FTTN) is exploring a potentially lucrative acquisition in oil rich West Texas. If FTTN is satisfied with its findings, the asset could provide a large-scale platform from which to continue the company’s recent growth.
FTTN is now doing its due diligence on acreage located in Jeff Davis County within the Delaware Basin of West Texas. The project includes 35,000 contiguous acres, accessible drill sites, water wells for rig use and fracturing jobs, and partial 3D seismic coverage.
Based upon analysis conducted by Schlumberger Limited, the largest oilfield company in the world, the area holds 162 million barrels of oil equivalent (MMBOE) per section (640 acres), which was derived using data from a well drilled in 2006, which included Schlumberger logs and rotary cores in the Avalon, Barnett and Woodford formations. The target formations range in depth from 6,000 feet to 9,000 feet. After application of a recovery factor of 4 percent, which is deemed appropriate for the area, given recoveries of other wells in the area, Schlumberger estimates a total of 6.48 MMBOE of recoverable reserves per section across all target formations.
To ascertain potential flow rates from new wells drilled on the acreage, NuTech was commissioned to conduct a study and estimated the Barnett formation would produce 6,500 BOE per day for a 10-day period, based on a modeled horizontal completion across 5,000 lateral feet with 17 pumping stages and three fracture points per stage. The estimated ultimate recovery (EUR) was calculated to be 625 MBOE for each Barnett well.
In the Avalon formation, NuTech calculated a flow rate of 2,500 BOE per day during a 10-day window, based on a modeled horizontal completion of 5,000 lateral feet with 12 pumping stages, four fracture initiation points per stage, and one additional pumping stage with two fracture initiation points. The EUR was calculated to be 250 MBOE for each Avalon well.
First Titan Corp. is building a strong collection of oil and gas properties and is dedicated to the continuing development of energy assets throughout North America alongside companies such as Continental Resources, Inc. (NYSE: CLR), Chesapeake Energy Corp. (NYSE: CHK), SandRidge Energy Inc. (NYSE: SD) and Ultra Petroleum Corp. (NYSE: UPL).
For more information on FTTN’s oil and gas projects, please visit www.firsttitanenergy.com/investors.html.
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Harvey S. Bryant, 941-753-4889
President and CEO