American Marconi Wireless News - West Texas Resources Subsidiary Texas Coastal Energy Approved as Oil and Gas Operator by the Railroad Commission of Texas

The approval authorizes Texas Coastal Energy to act as the operating entity responsible for the management and operation of oil and gas leases and existing wells and, where applicable, to oversee drilling and related field activities in accordance with applicable regulatory requirements.

In practical terms, Texas Coastal Energy will serve as the dedicated operating arm of West Texas Resources for the Company's Texas oil and gas activities. The subsidiary will be responsible for managing field operations, coordinating technical activities, overseeing existing wells and supporting future drilling, rehabilitation, workover and production initiatives.

Management views the operator approval as an important milestone in the continued development of West Texas Resources into a fully integrated oil and gas company.

"Receiving operator approval from the Railroad Commission of Texas is an important step for West Texas Resources," said Donald H. Goree, Chairman and Chief Executive Officer of West Texas Resources. "It gives us the ability to manage and operate our properties through our own wholly owned operating subsidiary and strengthens the operational foundation we are building for the next phase of the Company's growth."

The Railroad Commission of Texas is the primary state regulator overseeing oil and gas exploration and production activities in Texas. Operator status places Texas Coastal Energy directly within the regulatory framework governing drilling, production, well operations, reporting and field compliance.

$50,000 Blanket Bond Supports Expansion to Up to 99 Wells In connection with its operating platform, West Texas Resources expects to post a $50,000 blanket financial-assurance bond for Texas Coastal Energy with the Railroad Commission of Texas during September 2026.

Under the Railroad Commission's current financial-assurance requirements, the $50,000 blanket financial-assurance tier applies to operators with between 11 and 99 wells. Operators reaching 100 or more wells move into a higher financial-assurance tier.

The Company believes this is particularly important in the context of its planned growth. The Company's current well count and the number of wells covered by its broader reactivation program are being reconciled and will be reported separately once confirmed.

The $50,000 financial-assurance structure therefore provides Texas Coastal Energy with the appropriate regulatory framework to expand its operated well count within the 11-to-99-well category as the Company continues acquiring, reactivating and developing additional properties.

"This is another important piece of the operating platform we have been building," Goree said. "Our growth strategy is not simply about identifying additional wells. We are putting the regulatory, technical, financial and personnel infrastructure in place so that we can actually operate a substantially larger portfolio. The $50,000 bond structure gives us room to expand our operated portfolio within the applicable regulatory category as we continue executing our acquisition and redevelopment strategy."

Decades of Operating Experience

Donald Goree brings decades of direct oil and gas operating experience to West Texas Resources. Goree first became licensed to operate oil and gas properties in Texas in the late 1970s and has remained involved in the industry across multiple market cycles. Over the course of his career, Goree has accumulated extensive experience in field operations, production management, well rehabilitation, drilling oversight and regulatory compliance.

Goree has maintained a clean regulatory track record throughout his operating career, with no material regulatory infractions, and properties under his management have successfully passed regular field inspections conducted by applicable regulatory authorities.

"Our strategy is to build West Texas Resources around real operating capability," Goree continued.

"Oil and gas is a highly technical and highly regulated business. Experience matters. We have decades of operating experience, and our objective is to combine that experience with a disciplined funding, development and acquisition strategy as we expand the Company."

Building an Integrated Oil and Gas Platform West Texas Resources has previously announced plans to expand its oil and gas activities through a combination of organic development and strategic acquisitions.

The Company is evaluating opportunities involving producing properties, development-stage assets, existing wells, leases, equipment and other energy-related assets that management believes may offer attractive opportunities for rehabilitation, optimization and increased production.

Management expects to provide further updates regarding its oil and gas operations, property development activities, production initiatives and acquisition strategy as additional milestones are achieved.

About West Texas Resources, Inc.

West Texas Resources, Inc. is an oil and gas company focused on the acquisition, development, rehabilitation and optimization of oil and gas properties with underlying production and development potential. Through its wholly owned operating subsidiary, Texas Coastal Energy, the Company is building an integrated operating platform designed to manage and develop oil and gas properties directly. West Texas Resources intends to grow through a combination of organic development, strategic acquisitions and the expansion of its internal technical and operational capabilities. The Company is also evaluating complementary technology and strategic opportunities that management believes may contribute to long-term shareholder value.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, among other things, statements regarding the Company's planned expansion of oil and gas operations, future drilling, rehabilitation and production activities, potential acquisitions, future operating capabilities, the posting of financial assurance and the anticipated role of Texas Coastal Energy in managing Company properties. Forward-looking statements are based on management's current expectations, estimates and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements. West Texas Resources undertakes no obligation to update.

West Texas Resources, Inc.
Investor Relations
Erin Maire
[email protected]

Contact Investor Relations through the company's website:
www.West-Texas.com

SOURCE: West Texas Resources, Inc

View the original press release on ACCESS Newswire

Th.Berger--AMWN