The first contemplated purchase is of mainly 100% working interests in oil properties in Gregg and Rusk Counties in Texas (Kilgore Property) for $500,000. The property is 25 miles from the company’s existing properties in East Texas.
The Kilgore Property includes 34 wells, three of which are currently on production, producing approximately ten barrels of oil per day.
The second contemplated purchase is of mainly 100% working interests in Wood County for $190,000. The property includes 15 wells, of which four are currently on production, currently producing approximately 15 barrels of oil per day.
The purchase of the working interests in the Kilgore Property and/or Wood County property are subject to due diligence and new financing, and is expected to close around the mid to end of June, 2010.
Gale Force Petroleum focuses on the development and exploitation of oil and gas resources in mature basins. It owns oil and natural gas properties in Texas, Oklahoma, Tennessee and Kentucky.
