88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) announced it has completed the acquisition of additional oil and gas production assets in Texas.
The company said it completed the purchase of new-non operating working interest in leases and wells with conventional onshore production and in development assets within the Permian Basin of Texas.
A purchase price of US$1.5mln will be paid by 88 Energy and its joint venture partner Lonestar, with the UK-listed company paying US$1.1mln.
The new oil and gas assets will form an expansion of the existing Project Longhorn acreage, with a 45% average net working interest acquired by 88 Energy, and the remaining interest retained by the current operator of the assets, Lonestar.
88 Energy said the operation is targeting two new production wells in the second half of the year, which is expected to increase production to 160-200 barrels of oil (BOE) gross per day, and complements to further work-overs planned in the second half.
Upon completion of the new wells and work-overs in the Texas acreage, together with existing production wells, 88 Energy expects Longhorn to reach roughly 500 BOE per day by the end of the year.