As per the agreement, the company and the operator have entered escrow and anticipate closing as per the agreement.
Pursuant to the terms of the agreement, the company purchased a 25% working interest in the Sanger Heirs #1 lease in exchange for $200,000.
The terms of the agreement further obligate the company to pay its proportionate share of the completion cost of the well.
The company and Tejones provide for closing on this transaction on or before 4 February 2011, at which time the operator will begin site preparation and will commence drilling subject to the transportation of and availability of a drilling rig.
The Sanger Heirs (Wilcox) Prospect is located northeast of the Rhode Ranch East Field.
