TTE Petroleum (ASX:TTE) has current oil production from the Allen Dome oilfield in Texas.
Titan Energy (ASX: TTE) has acquired its third U.S. oil and gas asset that could let it break into the highly prospective Niobrara shale oil play.
The company will pay US$75,000 (A$70,786) to take up a 40% working interest in the 1360 acre (5.5 square kilometre) Sodbuster Prospect in Logan County, Colorado.
It will also be required to pay 50% of the costs to drill and complete an initial well to test the J Formation Sandstone that is the primary objective there.
Should this be successful, the joint venture will follow up with up to 9 additional wells.
The Sodbuster Prospect is located about 160 kilometres northeast of Denver and is anchored by 3 wells in the Sodbuster field that produced more than 360,000 barrels of oil in the first 17 years after discovery.
The prospect is also 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 (NYSE: NBL) and Marathon Oil (NYSE:MRO) each have a number of recent wells and permits in close proximity - both to the west and northwest of the lease.
Titan Energy had earlier this month said it was acquiring a 81% interest in the 160 acre Franklin Prospect in Illinois that offered it the opportunity to participate in potentially low cost yet high return well with shallow targets in a proven hydrocarbon province.
Prior to that, it said it was acquiring an initial 87.5% working interest over 344 acres in the proven Allen Dome salt dome in Brazoria County, Texas.