AGR Tools Inc's wholly owned subsidiary AGR Energy Holding Inc has executed an letter of intent with Jerry Cornwell (or the "vendor") to acquire 3 leases in southern Texas.

The consummating of Letter of Intent will be contingent on financing, the acquisition of a title opinion acceptable to legal counsel, and the negotiation of the final acquisition documents.

The leases consist of a 70% working interest in 3 leases which total approximately 547 acres. In consideration for the working interest and ownership interest AGR is to issue the vendor seven hundred thousand (700,000) restricted shares, make a delayed One Hundred Fifty Thousand Dollar ($150,000) cash payment due upon drilling commencement, and make a One Hundred Thousand Dollar ($100,000) payment attributable to maintenance costs associated with the properties to date.

Tags: AGR Group