Back to the drawing board for Interpose after gas well fails
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Gas minnow Interpose Holdings has brought in help after the unsuccessful drilling of a second well at the Gallatin project in the East Texas Basin.
The company (ASX:IHS), formerly known as Sunbird Energy, has appointed Ashanti Capital as its corporate advisor to help it find new projects and raise cash.
Interpose and the other partners in the Gallatin gas condensate project were forced to plug and abandon their Greenberry #1 well because the target formations were tight and had low porosity.
Rock porosity — a measure of its ability to hold a fluid — is necessary to make a productive oil or gas well.
The partners are investigating the possibility of a third well. However, Interpose is now on the hunt for new assets.
The company had $866,000 in cash at the end of the December quarter and estimated a cash burn of $130,000 for the March quarter.
Perth-based Ashanti recently helped ASX-listed juniors Kopore Metals (ASX:KMT) and Greenland Minerals and Energy (ASX:GGG) to raise $3 million and $10 million, respectively.
Interpose was unavailable for comment.