Paradigm Oil and Gas Inc. has entered into a purchase agreement to acquire the oil interests on 2,200 acres located in east Texas that is currently producing 3,000 barrels of oil per month. This production today would represent approximately a USD 150,000 in monthly net cash flow to the Company.

The property consists of 40 producing wells and 200 previously producing wells. An additional 100 wells can be drilled on the property. The Company plans to rework the existing non producing wells to bring them back to a producing state to increase production.

Under the terms of the agreement the seller is to also provide a current Engineering and Geological reserve report, results of which the Company will report on when received. The agreed to purchase price is set at USD 8,500,000 and is to be settled by way of cash or at the buyers discretion, 60% in cash and 40% financed by the seller. The purchase is to close by January 28, 2012 and is subject to continuing due diligence by the Company and approval of financing to be provided by the Investor party the Company previously entered into a Securities Purchase Agreement with and announced on December 1, 2011.

Tags: Paradigm Oil and Gas