US-based exploration and development firm Lithium Exploration Group (LEXG) has acquired a 4,000-acre Louisiana oilfield with 13.6 million barrels of oil.
With four major producible zones ranging from 3,000ft to 12,000ft in depth, the oilfield is expected to generate gross revenue of up to $700m, considering the current market price of $50 per barrel.
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The acquisition follows after Lithium Exploration announced its funding of the second and final instalment of its joint development agreement with White Top Oil and Gas.
Last month, the companies entered a collaboration to acquire and develop an oilfield outside of Lake Charles, Louisiana.
The current instalment completes the purchase option and includes development rights to the oilfield.
LEXG chief executive officer Alex Walsh said: "We are extremely excited about this project because it gives LEXG a tangible oil asset with existing production and huge potential upside.
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By GlobalData“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.
"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 LEXG investment also funds an updated 100-fold 3D seismic study that covers 16 square miles. The study is expected to assist White Top’s fill drilling programme in the long-term.
According to the evaluation from an independent geologist who assessed the shallow wells of the total 54 target wells showed by current seismic data, 2.6 million barrels of oil can be produced from the oilfield.
