AGR Signs Corsicana Texas Lease

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

AGR Energy Holding Inc. plans to acquire the 300-acre oil and gas Burke Lease in Navarro County, Texas from Corsicana Oil LLC for up to $300,000 in cash and carry costs.

AGR Energy will assume Corsicana’s plugging liability currently valued at $200,000.

AGR Energy is a wholly-owned subsidiary of Dallas-based AGR Tools Inc. (OTCQB: AGRT; OTCBB: AGRT)
The Burke Project represents an opportunity to use enhanced recovery techniques to reactivate 51 historically producing wells, a much less uncertain opportunity than a completely undrilled project. Its management believes with several steps of due diligence completed, the acquisition may close as soon as August 15th, 2012, or 30 days.

Vern Wilson, chief executive of AGR, says the company has always wanted to have strong Texas ties.

“The Burke project is a great overall fit and opportunity. Management is very familiar with the project and several steps in our due diligence process are completed which should allow for an efficient closing." Within the content of the report FGA reports the properties to contain 1.332MM proven and probable undeveloped barrels of oil.

“The economics were very compelling to AGR as a $13MM investment should yield roughly $110MM in revenues over 15 years,’’ Wilson says.

GR Energy To Buy Texas Lease July 30, 2012