West Texas Resources Outlines Reactivation Plan for 59 Wells Following Successful Well Test

Core Viewpoint - West Texas Resources, Inc. is implementing a reactivation strategy for 59 legacy oil and gas wells in Texas, following the successful compliance test of a natural gas-condensate well, indicating a focus on generating cash flow from previously shut-in assets [1][4]. Group 1: Reactivation Strategy - The company has acquired Texas Coastal Energy Corp. through a reverse merger and is focusing on reactivating ten gas-condensate wells that have shown strong pressure and high-value output [2][5]. - Phase One of the reactivation program targets 59 wells in South and Southeast Texas, which require minimal compliance work, with estimated reactivation costs between $50,000 and $100,000 [3][6]. Group 2: Financial Projections - Initial regulatory approvals are anticipated soon, allowing for the first 6–7 wells to be operational within weeks, projected to generate approximately $100,000 in monthly net revenue, totaling $1.2 million annually [4][5]. - The company expects to establish a near-term cash flow base of $7–8 million in annualized gross revenue from the reactivated wells, combining the output from the ten-well gas-condensate cluster [4][6]. Group 3: Operational Efficiency - The company emphasizes capital efficiency, operational compliance, and scalable growth, with the 59-well program being the first phase of a broader plan to unlock value across its Texas asset base [6][7]. - Additional sites are under review for reactivation, with engineering teams evaluating options for higher-potential assets [5][6].