Texas South Energy Inc. (fka TXSO)

[Philvb]

https://www.prnewswire.com/news-releases/delek-group-announces-consolidated-first-quarter-2018-results-300657199.html

Gulf of Mexico

On January 8, 2018, Delek Group finalized an agreement to acquire oil and gas assets in the Gulf of Mexico along with GulfSlope Energy and Texas South Energy. These include 12 federal exploration and production rights, of which 9 are exploratory prospects (7 deep waters and 2 shallow waters). Delek Group will finance 90% of two initial drillings in the Tau and Canoe prospects for a cost of up to $50 million in return for 75% of the rights, with addition options to acquire rights in future prospects.

The two exploration wells will be drilled in the next few months using a Rowan Companies rig, which has already reached the Gulf of Mexico. Necessary tests, including regulatory tests, are now under way in preparation for drilling the wells. The operator has filed two drilling plans for the first-phase assets for approval by the Bureau of Ocean Energy Management, which approved drilling of the Canoe well in May, and is expected to grant approval for Tau in the coming days. As of the financial statements' approval date, development costs for the reservoirs have totaled $6 million.