Fritz Project

CLAY & VIGO COUNTIES, ILLINOIS BASIN, INDIANA, USA

Black Gold Exploration Corp. and LGX JV Partnership

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On August 7 and September 13, 2024, Black Gold Exploration Corp (BGX) and LGX Energy formalized a joint venture agreement and an increase in leased acreage, further deepening their collaboration. These agreements represent a major advancement for both companies, expanding the leased acreage from 89.9 acres to 911.9 acres. The move underscores LGX's confidence in the joint venture and their commitment to further exploration and production in some of the most promising oil-producing regions of the Midwest.

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The strategic expansion of acreage positions both BGX and LGX to capitalize on significant synergies, as the new leases are situated near LGX’s existing production sites. LGX is employing its proprietary 2D seismic data and advancing to 3D seismic exploration, aimed at identifying high-potential drilling locations. This approach could substantially increase oil and gas production in the region, boosting the long-term success of the joint venture. For Black Gold, this partnership strengthens their indirect foothold in the energy sector, fostering growth and enhancing their presence in key markets.

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Vigo and Clay County

Historical – Illinois Basin – Indiana

The Illinois Basin is one of the oldest oil-producing regions in North America, having produced over 4 billion barrels of oil since its discovery in the 1800s. 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.

The basin has been revitalized in recent years through advanced technologies, including enhanced oil recovery (EOR) techniques such as alkali-surfactant-polymer (ASP) flooding. These methods have shown success, particularly in the Lawrence Field, suggesting that they could be applied across the basin to improve recovery rates from mature fields. The region continues to attract interest for both its conventional and unconventional oil and gas resources.

Despite the age of the basin, assessments indicate that there are still significant undiscovered, technically recoverable resources. A 2007 U.S. Geological Survey report estimated around 214 million barrels of oil and over 4 trillion cubic feet of natural gas remain to be discovered in the Illinois Basin, making it an ongoing area of interest for exploration and production.

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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