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BGX-Black Gold Exploration Corp. ("BGX" or the "Company") (CSE: BGX) (OTCQB: BGXCF) (FSE: BLGX) is a growth-focused oil & gas company dedicated to unlocking untapped potential in the Illinois Basin. BGX has strategically selected the Illinois Basin in the United States due to it established, oil-rich reserves derisked by decades of proven production history.
​The Company is pleased to pursue the assets in the Illinois Basin, with its joint venture partner LGX Energy Corp (“LGX”). With shared interests covering over 911 acres, BGX and LGX will be beginning with the Fritz 2-30 Well. The Company intends to generate near-term production, build asset value, and position BGX for scalable growth across a portfolio of low-risk targets in the region. The joint-venture partnership allows the Company to leverage LGX's expert team of industry veterans and seismic experts, further derisking the execution of its strategy in the region.
BGX also has exploration assets in the San Jorge Basin, which is Argentina's most prolific hydrocarbon-producing region. The Company has patented claims covering over 20 square kilometers and is currently performing a comprehensive Environmental Impact Study. Once complete the Company intends to seek an exploration partner to continue to develop its El Carmen project.
With a clear path to near-term production, reduced operational risk, and access to one of North America’s most reliable oil regions, BGX will primarily focus its resources on the Illinois Basin reflecting the Company’s commitment to capital efficiency, operational risk mitigation, and near-term cash flow generation. BGX is committed to this strategy which it believes will create significant shareholder value through disciplined development, strategic partnerships, and a relentless focus on returns.
WHY THE ILLINOIS BASIN?
A Historically Proven Basin
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The Illinois Basin is one of the oldest oil-producing regions in North America, having produced over 4.2 billion barrels and an estimated 4 trillion cubic feet of natural gas. This basin spans Illinois, Indiana, and Kentucky, and is known for its shallow, low-cost drilling opportunities. Most oil in the region is found in shallow dolomite and sandstone reservoirs, and many fields produce oil from multiple independent reservoirs, allowing for varied extraction methods.
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Extensive Untapped Reserves
Despite the age of the basin, assessments indicate that there are still significant undiscovered, technically recoverable resources. A U.S. Geological Survey report estimated around 4.1 billion barrels of oil remain to be discovered in the Illinois Basin, making it a strategic area of interest for exploration and production for the Company.
Rejuvenated with Modern Technology
Together with its joint-venture partner LGX, the Company will unlock the untapped potential of the basin through the use of modern technologies, such as 3D seismic analysis. Based on the drill results at the Fritz Well, this has proven to be very accurate, which sets the stage for low-cost and economical development for more projects in the basin.
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Strategic Geographical Location
The Company believes that this basin is a premier location for oil and gas development due to its rich geological resources with vast untapped oil and gas potential and cost-effective operational conditions. The basin also enjoys the many benefits of being situated in the United States, which has robust infrastructure and a favorable regulatory environment. Especially in counties such as Clay and Vigo, which support efficient production and rapid market access, through Indiana’s streamlined permitting process, which accelerates drilling and production timelines, enabling quicker returns on investment.
KEY BENEFITS
• Stable Regulatory Environment in a pro-energy U.S. jurisdiction
• Robust Oil Infrastructure with proximity to domestic refineries and transport networks
• Established Reservoirs with 4+ billion barrels historically produced and extensive production data
• 4.2 Billion Barrels of Untapped Resources
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• Low Drilling and Completion Costs enabling quick, scalable development
• Short Timelines to Production accelerating potential returns for shareholders
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• Shallow, Economical Development Zones
• Use of Advanced 3D seismic Technology
JOINT VENTURE WITH LGX
BGX has an interest in over 911 acres in the Illinois Basin, through their joint venture with LGX. LGX provides advanced seismic data, production infrastructure optimizing resource recovery and advanced 2D/3D seismic mapping. Through the joint venture, the strategic expansion of acreage positions both BGX and LGX to capitalize on significant synergies across LGX’s existing production sites. LGX is employing its proprietary 3D seismic data, aimed at identifying high-potential drilling locations. This approach has already proved extremely accurate at the Fritz well and has the potential to substantially increase oil and gas production in the region, boosting the long-term success of the joint venture. For BGX, this partnership strengthens their indirect foothold in the energy sector, fostering growth and enhancing their presence in key markets.
STRATEGIC JV PARTNER BENEFITS
• Rapid Expansion into U.S. energy markets
• Risk-sharing and tech-driven JV model
• Potential for early production and revenue
• Scalability across over 911 acres in the Illinois Basin
• Expert Team of industry veterans and seismic expert
References
- Illinois Basin, Wikipedia
- Maha Energy's Acquisition in the Illinois Basin, Oil & Gas 360
- Illinois Basin Oil and Gas Assessments, U.S. Geological Survey