7th Nov 2019 17:13
(Alliance News) - Attis Oil & Gas Ltd said Thursday the memorandum of understanding announced in October for 25,000 leasehold acres in the Texas Panhandle has been extended to December 1.
The extended memorandum will allow the oil & gas firm to conduct due diligence over the acreage, determine feasibility and enter into good faith negotiations on structure if the findings are satisfactory.
This will allow Attis to further expand their joint position in the Red Cave formation.
In October, Attis secured a lease for an acreage in Texas, which holds 17 potential drilling locations.
The Bivins 115 lease, Attis's first acreage in the Red Cave formation in the Texas panhandle, has a present value of USD8.2 million. A recent study on the lease assumed 945,585 barrels of oil produced over a 20 year well life.
In a statement, Attis commented: "The oil play, which covers just 10,500 acres, sits in a 28 square mile area, 30 miles to the north of Amarillo, and remains largely intact as drilling has historically targeted the deeper and larger Brown Dolomite formation. With low drilling costs and low geological risk, Red Cave represents an opportunity to generate significant cash flow in the near term."
Shares in Attis Oil & Gas closed flat at 0.082 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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