Amazing Energy Oil & Gas Co. (AMAZ:OTCQX) closed on a funding transaction in which Joint Venture Working Interest Partners will pay 100% of drilling and completion costs of a horizontal San Andres well. In return, the investors will receive a "50% working interest in the wellbore after a preferred payout of invested capital," the company noted.
"Transitioning to horizontal drilling and into a well-known regional zone like the San Andres is a crucial step in the growth of our company," said Amazing Energy's CEO Willard McAndrew III in the release.
The new horizontal well, Amazing Energy's first in the Texas formation, is scheduled to be drilled in December 2018 to a total depth of 3,000–4,500 feet and include a 2,000–2,500-foot lateral section. To date, the company has only drilled shallower, vertical wells in Texas' Queen Formation.
McAndrew commented that high-impact production has come from many San Andres wells. From Amazing's own data from its WWJD #31 well, drilled there earlier this year, four samples showed porosity levels up to 23% and oil saturation levels as high as 17%. "At approximately 600 feet thick overall, the San Andres displayed intervals covering five distinct sections and a sweet spot that we will target at over 170 feet of pay thickness," he added.