West Texas Resources, Inc. has acquired a 50% working interest in an oil and gas prospect located in the Palo Duro Basin in Hale County, Texas.
In June and July 2014, the Company acquired non-operating leases covering approximately 1,070 gross mineral acres leases in the Palo Duro Basin.
The leases have a primary term of five years with a Company option to extend the term for another five years. The leased properties are oil and gas prospects in the Atoka Shale and Wolfcamp Shale, for which West Texas Resource holds a 50% working interest and a 40% net revenue interest, with Total Energy Partners, of Tulsa, Oklahoma.
The leased properties are subject to a 20% royalty held by the owners and a third party. West Texas Resources is currently evaluating its options for the exploitation of the leased properties, including the Company's sale of the leases or its farm-out of the leases to an oil and gas operator.