FTTN Announces shale boom may lead to bargain offshore acquisitions
Friday, Feb 10, 2012
As major energy producers focus on onshore shale oil and gas resources, First Titan Corp. (OTCBB:FTTN) is working to take advantage of bargain opportunities offshore in the Gulf of Mexico.
FTTN is no stranger to onshore assets—the company owns working interests in oil wells ready to be drilled in Texas and Louisiana. But higher production costs spurred by booming demand for domestic oil and gas, along with declining interest in Gulf exploration following the Deepwater Horizon disaster, have made many offshore properties a bargain. And where there’s a bargain, FTTN sees opportunity.
Offshore asset prices have declined during the past year as tougher drilling rules imposed after BP’s 2010 spill prompted major explorers to shrink their investments in the region. Tumbling gas prices have also driven asset sales by producers in need of cash to fulfill drilling obligations in onshore shale leases.
FTTN isn’t alone in its interest in potentially undervalued offshore assets. SandRidge Energy agreed this week to acquire Dynamic Offshore Resources LLC and its Gulf of Mexico oil fields in a deal worth $1.28 billion. Quantum Energy Partners, a $6.5 billion Houston-based private equity firm announced Wednesday that it would bankroll a company working to acquire offshore U.S. oil fields.
An emerging oil and gas exploration company, FTTN will continue to target new onshore assets as it explores opportunities in the Gulf in order to build a well-rounded, robust collection of assets in the booming domestic energy sector.
For more information on FTTN’s unconventional resources initiative, please visit www.firsttitanenergy.com/investors.
First Titan is working to develop new energy solutions to compete in a booming global industry alongside Chesapeake Energy Corp. (NYSE: CHK), Anadarko Petroleum Corp. (NYSE: APC), SandRidge Energy Inc. (NYSE: SD) and Apache Corp. (NYSE: APA).
Source: Business Wire
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