In addition to the producing wells, Nitro will have access to participate in several new offset wells and a secondary recovery project. Nitro will be appointed as the operator. In addition, the firm intends to carry out remedial work on several well locations for immediate enhancement of production.
The acquisition will be funded by the issuance of restricted shares from Nitro’s corporate treasury. The anticipated closing date will take place during the first week of February 2008.
Larry Wise, president and CEO of Nitro, said: The company has an excellent opportunity to acquire producing leases and further drilling opportunities for capital stock. This will provide the company with cash flow to develop further reserves and production capabilities.
