Eagle Oil Announces Execution of Farmout Agreement for 104 Wells
RENO, Nev., June 9, 2011 /PRNewswire/ -- Eagle Oil Holding Company, Inc. (OTC: EGOH) (the "Company") today announced the execution of a Farmout Agreement with Questus Energy LLC, a Texas Company ("Questus").
Pursuant to the Agreement, Questus will provide the funding and other resources necessary to recondition and restart up to 173 wells at the Company's East Texas field, including the previously announced farmout agreements that totaled up to 20 wells, the Questus Agreement represents the completion of the Company's strategy to outsource the reconditioning of its oil resources. The Agreement is subject to an initial payment being made by Questus by June 22, 2011. The parties expect work on the wells to commence shortly thereafter. Questus will also complete the compliance requirements of the Texas Rail Road Commission.
Questus will provide the necessary capital and resources to restore the pumping operations with no additional capital investment by the Company in exchange for a share oil the revenue generated by the wells.
About Questus: Questus is a Dallas, Texas company that has been active in the US oil and gas market, including its own operations and production.
About Eagle Oil: Eagle Oil (EGOH) (www.eagleoilholdingco.com) is an independent energy company in the active East Texas oil and gas region. The Company owns a 73% working interest in 173 wells on its 927 acres located in the Historic Woodbine Oil Field.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "should," "intends," "will," or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Contact: Eagle Oil Holding Company, Inc. (209) 736-4530
SOURCE Eagle Oil Holding Company, Inc.
Share this article