The Lighthouse Petroleum's management has approved budget to begin work for 'Project 1', located in Haskell County, Texas, US, by mid-September 2012.
This will mark the company's first joint project with partner Paradigm Oil and Gas.
Cook Sands, Hardy B Sands, Swastika, Cross-Cut, Patio A-D Sands, Palo Pinto, Caddo Reef, Mississippian and Ellenberger Limestone are the productive zones of Project 1 and are considered for in-field drilling.
The producing wells are in close proximity and the zones lay in a deltaic formation of layered sediments starting at depths of 12,00ft to 4,500ft.
The project will enable the company to build cash flow while maintaining its operational overhead.
Lighthouse Petroleum CEO Todd Violette said following the conclusion of a site inspection, the company believes the infrastructure and the resources at Project 1 will help both companies to kick off a joint business model of developing cash flow from the rework of projects in Texas.
The initiative is seen as step building process to carry out more cash flowing projects for the company, while helping it participate in areas of interest such as the Reames/Masterson project.
Project 1 could have both oil and gas from the well, in which Lighthouse Petroleum will have 100% working interest and 75% net revenue interest.
"The combination of the deep rights opportunities Lighthouse has in Louisiana and the investment in central Texas is anticipated to give the company a revenue stream from the reworks, increased assets from the Reames/Masterson and upside potential from the deep well rights in the Tuscaloosa Marine Shale," said Violette.