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First Titan Corp. (FTTN) Sees Significant Opportunity In Acquisition Of Conventional Assets

Oct. 02, 2013 10:25 AM ETFTTN
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While larger public exploration and production companies focus their resources on developing resource plays and selling conventional oil and gas assets, First Titan Corp. takes a different approach in building a substantial collection of oil and gas properties by focusing on parsed assets that provide opportunity for short-term gain.

Large oil and gas companies gain access to capital for drilling wells in resource plays such as the Eagle Ford Shale, Bakken, and Marcellus Shale, divesting conventional assets and redeploying the funds.

It is here that FTTN finds its opportunity. The company's strategy is to acquire these high-quality assets that are being trimmed from larger company portfolios, as competition for these conventional assets are relatively low.

As private-equity firms scramble to build management teams to back-fill the lack of competition, FTTN has positioned itself to take advantage of the market and acquire producing and/or non-producing conventional assets that can be online within 60 days at more attractive economics.

FTTN is currently evaluating a high-potential acquisition in Hardin County, Texas, which includes several wells located on more than 4,100 leased acres. In the 1950s, after only one year in production, the target zone in the subject well was shut-in because of sand incursion, which could not be properly addressed utilizing the technology of the time.

With modern technology at hand, FTTN estimates potential production from the lease to exceed 10,000 barrels per day, if a productive zone found in one of the wells is discovered across the entire acreage play.

For more information, visit FirstTitanEnergy.com

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