Legend Oil and Gas has signed a letter of intent with Double 7 Oil and Gas to acquire producing oil properties in southeastern Kansas, US.
The properties include 29 wells, which cumulatively produced an average of 16 barrels oil per day (bopd) during a seven-day test production period in the last month.
The production is located on a 240-acre contiguous lease in the McCune area of southeastern Kansas.
Legend said there are an additional 14 water injection wells which have yet to be put into service.
Legend president, Marshall Diamond-Goldberg said the wells and flow lines are already in place; all that is necessary to complete the water flood is a water source well and injection pump.
"The property can be further developed with additional infill locations and further expansion of the water flood, and the reservoir is at a depth of less than 250ft, which reduces the cost to drill additional wells," Diamond-Goldberg said.
The companies are planning to close the definitive agreement next month.
Legend is an oil and gas exploration/exploitation, development and production company.