Austin-based Imperial Oil & Gas has signed an oil and gas lease agreement with the mineral owner of approximately 35 acres and an existing wellbore in Montague County Texas (project).

As per the terms of the agreement, the project lease area and the and the existing well, known as Nunnelly #1will be developed.

The signed deal allocates 25% royalties interest to the land owner in exchange for allowing the oil driller to develop the site.

The deepening of the existing Nunnelly #1 wellbore is the company’s first planned option.

The company said that the analogous wells in the near vicinity have produced cumulative totals generally in excess of 17,000 barrels of oil without the benefit of modern stimulation technology.