West Texas Resources Reports Successful Compliance Test; Highlights High-Value Condensate and Targets Initial Set of Ten Similar Wells

Rhea-AI Summary

West Texas Resources (OTC: WTXR) has announced successful compliance test results from one of its natural gas wells, demonstrating 4,000 PSI of gas pressure at the wellhead. Operating at just 10-15% capacity, the well is projected to generate $2,000 daily in natural gas sales, translating to approximately $720,000 annually before expenses.

The well produces high-quality condensate with 60 API gravity, a premium product for high-octane blending. WTXR has identified ten similar gas-condensate wells in its inventory requiring only compliance work, with potential combined revenues of $7.2 million annually. The company's total portfolio includes over 50 additional wells at various stages of evaluation and planning.

Positive

• Single well potential revenue of $720,000 annually from natural gas sales
• High-value condensate production with premium 60 API gravity
• Portfolio of 10 similar wells with potential $7.2M annual revenue
• Strong well pressure of 4,000 PSI indicating good production potential
• Additional 50+ wells in evaluation and planning stages

Negative

• Wells operating at only 10-15% of maximum capacity
• Revenue projections exclude royalties, taxes, and operating expenses
• Wells require compliance work before restart

News Market Reaction – WTXR

-25.00%

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-25.00% News Effect

On the day this news was published, WTXR declined 25.00%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BRENHAM, Texas, Sept. 30, 2025 /PRNewswire/ -- West Texas Resources, Inc. (OTC: WTXR) ("WTXR" or the "Company"), a subsidiary of Texas Coastal Energy Corp. ("TCEC"), today announced successful results from a recent Railroad Commission compliance test on one of its natural gas wells, confirming readiness to return the well to production. Surface measurements indicated approximately 4,000 pounds per square inch (PSI) of gas pressure at the wellhead ("Christmas tree"), supporting near-term tie-in for sales.

Based on conservative operating assumptions of only 10–15% of the well's maximum capacity, management estimates the well can generate roughly $2,000 per day in natural gas sales. That equates to approximately $60,000 per month, or about $720,000 on an annualized basis for this single well, before royalties, taxes, and operating expenses.

In addition to gas, the well produces a light hydrocarbon condensate with an API gravity near 60, a premium, high-value stream commonly used as a high-octane blending component. Field samples from the compliance test indicate an exceptionally clear, marketable condensate, underscoring the quality of the Company's reservoir and liquids profile.

Management further notes that this well is one of at least ten similar gas-condensate wells in WTXR's current inventory that require only compliance work before restart. On a comparable, conservative basis, each of those wells is expected to have the potential to contribute approximately at least $2,000 per day in gross gas sales once online—implying an aggregate run-rate on the order of $20,000 per day (about $600,000 per month, or roughly $7.2 million per year) from the initial ten-well cohort, prior to royalties, taxes, and operating expenses. Actual performance will be confirmed as each well completes its compliance process and is brought back onstream.

"This is an early but important validation of the cash-flow engine we are rebuilding at WTXR," said Donald H. Goree, Chairman & CEO of TCEC. "A single well, operated conservatively, can translate into approximately $720,000 annualized gross revenue potential. Replicated across the initial set of ten similar wells, the numbers become meaningful very quickly. And that is before we even address the balance of our portfolio—more than fifty additional wells at various stages of evaluation and planning."

Today's update complements the Company's broader program to return legacy wells to production through targeted, low-cost compliance and workover activities, while it advances longer-dated development opportunities across its Texas asset base.

About Texas Coastal Energy Corp.

Texas Coastal Energy Corp. (TCEC), through its subsidiary West Texas Resources, Inc. (OTC: WTXR), is a Texas-based oil and gas company focused on revitalizing legacy fields and unlocking value through modern operations, disciplined capital programs, and strategic acquisitions. The Company currently controls 59 oil and gas wells with associated production infrastructure. TCEC's strategy combines near-term reactivation of existing wells, high-return workovers, and development of proven reserves. In parallel, TCEC is advancing flare-gas-to-power initiatives for prospective Bitcoin mining deployment to diversify cash flows and strengthen the balance sheet.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding expected production, revenues, margins, development plans, timing, and strategic initiatives. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially, including commodity price volatility; operational, regulatory, and environmental risks; well performance variability; access to capital; and other factors described in the Company's filings and public disclosures. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them except as required by law.

View original content:https://www.prnewswire.com/news-releases/west-texas-resources-reports-successful-compliance-test-highlights-high-value-condensate-and-targets-initial-set-of-ten-similar-wells-302570732.html

SOURCE Texas Coastal Energy Corporation (WTXR)

FAQ

What are the projected revenues for WTXR's initial ten-well program?

WTXR projects potential revenues of $7.2 million annually from the initial ten-well program, based on approximately $2,000 daily revenue per well, before royalties, taxes, and operating expenses.

What type of condensate does WTXR's well produce?

The well produces a premium light hydrocarbon condensate with 60 API gravity, which is highly valuable as a high-octane blending component.

How many wells does WTXR have in its total portfolio?

Beyond the initial ten wells ready for compliance work, WTXR has more than 50 additional wells at various stages of evaluation and planning.

What is the gas pressure reading from WTXR's compliance test?

The compliance test showed 4,000 pounds per square inch (PSI) of gas pressure at the wellhead.

What is the projected revenue from a single WTXR gas well?

A single well is projected to generate $2,000 per day in natural gas sales, equating to approximately $60,000 monthly or $720,000 annually before expenses.