Amadeus said it had executed a contract with the Brazos Gas Company LLC via its US subsidiary to acquire the stake in the Chickasawhay Prospect, located in Mississippi's Wayne County.
"The leasehold area covers a total of 1850 gross acres about 2 miles to the southwest of the town of Waynesboro. Chickasawhay Creek is an isolated high amplitude salt feature, which is prospective for Jurassic Cotton Valley Sandstone and Smackover Dolomite reservoirs," said Amadeus spokesperson, Caroline Bentley.
Bentley said Amadeus anticipates an initial 15,500 foot test well will be drilled before the end of this financial year to test the Cotton Valley formation.
"Amadeus has contracted to spend $US91,500 for leasehold options and 3D seismic data, in order to earn a 13.1 per cent working interest," Bentley said. "The project will be funded out of current cash reserves, leaving existing bank lines of credit available to fund further acquisitions."
Shares in Amadeus Energy last traded at 9.5c.
