The last and only time we’ve made mention of Lithium Exploration Group Inc (OTCMKTS:LEXG) here on Street register was as part of an article on another company, Solaris Power Cells Inc (OTCMKTS:SPCL), pertaining to a joint PR issued by the pair earlier this spring which relayed the fact that LEXG obtained the rights to license and further develop SPCL’s PESA™ Energy Storage Technology.
We want to come back to focus on LEXG itself today, in light of the sudden spike in PPS and volume we’re currently observing, in addition to the fact that the company has just announced that its partners have struck a considerable oil-bearing formation in Louisiana.
Lithium Exploration Group Inc (OTCMKTS:LEXG) revealed that its partners at White Top Oil and Gas have discovered an overhang on the edge of the salt dome that has 800 feet of prospective oil pay at a depth of only 3,000 feet. The discovery came from a recent collaboration with the company that has storage caverns inside of the salt dome on the property. The cavern company has shared a recent well they drilled which was believed to be inside of the salt dome.
When they were drilling to a much deeper target depth, they went through an 800-foot zone of sandstone at only 3,000 feet, which is in the historically rich Miocene oil formation. The company and their partners at White Top have had independent analysis of the well log completed and have confirmed the initial indications of oil rich sandstone.
“This news is exactly what we predicted we would see from the updated seismic analysis we invested in last month. Having this type of tangible data to support the thesis is huge for our efforts. As stated last month, the historical drilling efforts made on this field were done using old technologies, which could never have seen this type of overhang. The nearest wellbore that has been drilled on the outside of the salt dome in this part of the field is almost a half a mile away and, if this overhang goes all the way around the salt dome, it could result in the production of more than two million barrels of shallow oil,” commented CEO Alex Walsh.
“These salt domes are easily researched for folks that aren’t oil and gas experts, but the overhang concept is that, over millions of years, the salt domes form mushroom heads with undiscovered pockets of oil in them. Our partners have identified several lower zones that they think will have significant production after updated seismic data is analyzed, but nobody thought there were such significant reserves at such a shallow depth. This new find is significant for us and our partners at White Top Oil and Gas, and I look forward to updating you on our progress in the coming weeks.” (Source: Accesswire via Yahoo!)
We look forward to monitoring the news wires for those updates, as well as monitoring the stock for continued bullish behavior. Good news from the oilfield in Louisiana could have an immediate effect on LEXG stock. That’s why we’ll want to stay closely tuned to the situation. If you want to easily follow LEXG’s progress the solution is very simple. We’ll stay up on any developments with LEXG and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in LEXG stock, short or long.