Globalgroup Investment Holdings, Inc. reported that its subsidiary Sovereign Oil Corp has completed the initial clean-up of the Baker lease tank battery in preparation for oil storage from the accessible production of the 9 existing wells and 3 additional wells scheduled to be re-worked in Q1. The electricity has been tested and oil is expected to begin flowing by mid-month.

Under the terms of the acquisition Sovereign has an additional 60 days in which to complete its due diligence and all oil recovered during this period shall be the property of Sovereign Oil & Gas. Sovereign expects to close the acquisition by March 1st 2013.

Fred Rackers , President of Globalgroup Investment Holdings, Inc., stated, "The secondary recovery drilling of the three wells on the Baker lease in Kansas in addition to the 9 existing producing wells is just the beginning. Several additional wells are anticipated to be drilled later this year on the Baker lease." Mr. Rackers continued, "The production from the 9 existing wells and projected production from the 3 wells to be re-worked will result in improved cash flow for Globalgroup throughout 2013."

Tags: Sovereign Oil & Gas