Eagle Oil reported the formal signing of a new Letter of Intent (LOI) with Nitro to provide operations on the East Texas field with a farm-out agreement (operations agreement).

The Company plans to restart oil pumping operations at its East Texas oil field by partnering with Nitro and an experienced oil field service company on a specific well by well procedure. Nitro would provide the necessary capital and resources to restore oil pumping operations with no additional capital investment by the Company. The Company would use an independent operator to get the field into production. Nitro would share in the revenue generated by the field production.

Nitro is affiliated with a German consortium that has been desirous of entering the US market in oil and gas production and can provide new sources of developmental capital to Eagle Oil.

Tags: Eagle Oil Holding Company