Eagle Oil Holding Company, Inc. has received a 'Letter of Intent' with a new registered operator in Texas for the start-up of oil field operations.
Pursuant to the Agreement, within the next 30 days, and after the due diligence requirements are completed and approved, the new Operator plans to begin the reconditioning of an initial group of 5 wells at the Company's East Texas field, and increase the groups of wells at 5 well intervals, until the total reaches 20 wells in the first round of development. Additionally, the Operator plans to also service the compliance requirements of the Texas Rail Road Commission.
The Agreement represents the continuing Company strategy to capitalize on its oil assets through outsourcing the reconditioning of its wells and restoring pumping operations with no additional capital from the Company. The Agreement will potentially include up to 120 wells. More details will be forth coming in the next few weeks.