Lexaria has participated in the first Tuscaloosa well and targets deeper oil and gas horizons.
The company has shown concern about a well, which targets the Tuscaloosa "A" sand at around 12,000 feet depth. So far, this is the deepest well that Lexaria has been concerned with in Mississippi. It has begun drilling operations.
The prospect is up-dip to the previous well, which produced both oil and gas before stopping production because of down-hole problems. Three dimensional seismic technology has been used to develop the prospect and widely revised seismic stratigraphy.
The region has six Lower Tuscaloosa oil fields, which has produced more than 1 million barrels of oil each and the chief Liberty Field, producing more than 4.7 million barrels. Thanksgiving field was the main Lower Tuscaloosa gas field in the region. It produced gas of more than 30 billion cu.ft.
Lexaria is partaking in this prospect by a 5.75% Before Casing Point (BCP) and relapsing to a 4.423% After Casing Point (ACP). In the past, Lexaria has taken part with additional risk-averse percentage interests before, in the new target development and has previously requested increasing those interests eventually. The company has stockpiled adequate funds to meet its well drilling commitments.