The Perth-based junior said it was acquiring a 70% working interest in the 600-acre Wilcox project, estimated to contain 60 billion cubic feet and 8 million barrels of oil, in Hardin County.

Golden Gate executive chairman Sam Russotti this project was the company’s third low-risk exploration venture, with potential for high production rates and oil reserves.

“Together these three recent projects have the potential to significantly increase the company’s asset value,” he said.

In return for its stake, Golden Gate has agreed to carry the farm-out party through the drilling and completion activities on the existing exploration well.

Drilling will primarily target sands in the Wilcox Formation at a depth of 11,000 feet (3352 metres).

The project neighbours discovered in 1956 that it has produced 7MMbbl of oil and 53 Bcf gas from shallower Wilcox zones.