West Texas Resources Announces Successful Compliance Test and Future Wells Exploration Plans

West Texas Resources, Inc. (OTC: WTXR), a subsidiary under Texas Coastal Energy Corp. (TCEC), has made headlines with its recent announcement regarding the outcome of a compliance test on one of its natural gas wells. The results indicate that the well is ready to resume production, showcasing an impressive gas pressure of approximately 4,000 pounds per square inch (PSI). This positive development is not only a boon for the company but also signals potential financial gains from gas sales in the near future.

The management of West Texas Resources is basing its projections on conservative estimates, assuming that the well will operate at only 10 to 15 percent of its maximum capacity. According to their calculations, this conservative output could yield around $2,000 in daily revenue, translating to approximately $60,000 per month and an impressive annualized figure of about $720,000, excluding royalties, taxes, and operational expenses.

In addition to the substantial natural gas production, the well has also proven to generate a high-value light hydrocarbon condensate with an API gravity nearing 60. This particular condensate is known for its high-octane blending potential, marking it as a premium product in the market. Results from the recent compliance test revealed an exceptionally clear and marketable condensate, underscoring the quality of the reservoir and the liquids profile managed by the company.

Furthermore, the company is excited about the prospects for the future. This well is just one among a total of at least ten similar gas-condensate wells in West Texas Resources' inventory that are poised for compliance work before they can be brought back online. Each of these wells is similarly expected to generate around $2,000 per day in gross sales. When viewed as a collective unit, these initial ten wells could amass a staggering daily run-rate of about $20,000, which would amount to approximately $600,000 each month and around $7.2 million annually, before accounting for taxes and expenses.

This promising restart of production illustrates the company’s push to revitalize their operational landscape. Donald H. Goree, Chairman and CEO of TCEC, proudly stated, “Today’s announcement serves as a key validation of our efforts to rebuild the cash-flow engine at West Texas Resources. The revenue potential from just one well can significantly impact our financial trajectory.” He further emphasized that the valuable insights gained from the compliance test and initial well production lay a strong foundation for assessing the full potential of their wider portfolio, which encompasses over fifty additional wells at various stages of evaluation and planning.

The successful compliance test aligns with the company’s broader strategy to return legacy wells to operation through targeted, low-cost compliance and maintenance operations. In addition to the immediate revenue benefits, West Texas Resources is also exploring longer-term development initiatives across its Texas asset base, including ventures in flare gas-to-power projects aimed at diversifying cash flows—and potentially tapping into emerging markets such as Bitcoin mining.

With the news of West Texas Resources' successful compliance test, anticipation builds for the upcoming journeys these wells will embark on, and the potential they hold for both the company and its stakeholders. As West Texas Resources positions itself to enhance its operational capabilities and explores new revenue streams, it remains an exciting player within the competitive landscape of natural gas and oil production in the state.

This press release contains certain forward-looking statements, including expectations regarding production, revenue, and other operational metrics. These statements are based on current assumptions and might be influenced by various risks such as price volatility and operational challenges. The company acknowledges that real-world results might differ significantly from those anticipated, emphasizing the uncertainty inherent in forward-looking statements.