Australian-based Titan Energy has acquired its third U.S. oil and gas asset that could let it break into Niobrara shale oil play.
The company will pay $75,000 for a 40% working interest in the 1360 acre Sodbuster Prospect in Logan County.
The deal calls for Titan to pay 50% of the costs to drill and complete an initial well to test the J Formation Sandstone, which, if successful, will be followed with up to nine additional wells.
The new play is in a productive region northeast of Denver and anchored by three wells that produced more than 360,000 barrels of oil in the first 17 years after discovery. It is alsoo close to the Merino field that is reported to have produced about 4.2 million barrels of oil from 25 wells over 30 years.
Titan Energy noted that while the primary target at the prospect is the J Formation Sandstone, the lease is also located in the same Denver-Julesburg Basin as the Niobrara oil play and that the oil prospective area is rapidly expanding towards the prospect.
Noble Energy and Marathon Oil are also active in the area.