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- Xstate Resources (XST) has wrapped up a maiden independent prospective resource assessment for its Borba gas project in California
- Mean unrisked recoverable gas prospective resource for Borba came in at 141 billion cubic feet
- The explorer has already set to work preparing a rig move to the well, which is expected to spud this week
- Joint venture working interests over the Borba Prospect are set to be split 66.67 per cent and 33.33 per cent to Sacgasco (SGC) and Xstate Resources (XST) respectively.
- Xstate closed today’s session down 11.8 per cent trading at 1.5 cents each.
Xstate Resources (XST) has wrapped up a maiden independent prospective resource assessment for its Borba gas project in California.
The report assessed a mean unrisked prospective resource of 141 billion cubic feet — gross 100 per cent joint venture — and 38 billion cubic feet —net XST entitlement share — of recoverable natural gas for the prospect.
The explorer also says the chances of intersecting at least one gas zone are estimated at 70 per cent, based on an assessment by ERC Equipoise (ERCE).
A rig move to Borbra is already well underway with the one – seven well expected to spud this week.
After drilling at the well has wrapped up, the joint venture working interests over the Borba Prospect are set to be split 66.67 per cent and 33.33 per cent to Sacgasco (SGC) and Xstate Resources (XST), respectively.
XST says the assessment of the chance of development was beyond the scope of the ERCE report, however as operator, Sacgasco assesses the chance of development to be 80 per cent.
The oil and gas leases in the Borba AMI are standard mineral right leases with royalty of 21 per cent, with net entitlement to Xstate (after royalties deducted) at 37 billions of standard cubic feet of gas for the mean unrisked prospective resource.
Xstate closed today’s session down 11.8 per cent trading at 1.5 cents each.
