The acquisition, with 100% working interest and 82% NRI, is for the mineral rights from the surface to a depth of 5,000 feet.
Paradigm Oil and Gas CEO Todd Violette said the lease is a good acquisition for the company.
"We can be producing oil before the end of the year. Historically, when this lease was producing it typically sold about 210 to 220 barrels of oil a month, which, based on current oil prices, should net Paradigm about $15,000 a month or $180,000 annually," said Violette.
"The lease has two producing wells and one injection well. Ploy lines and electric are already run to the well heads. We plan to install electronic submersible pumps into the wells and produce start producing.
"The lease has a solid tank battery, separator and water tanks. I think this is a good starting point for building a footprint in the area."
Field inspection and initial work will begin next week at the project site, which belongs to the Mexia Talco Fault Zone in the Woodbine Zone, that extends along the Mexia Fault Zone that runs through Milam, Falls, Limestone, Freestone, Navarro, Henderson and Kaufman countries.
The company also said that, the ability to get this lease into production will allow it to begin negotiating with the landowner for the rights to a deeper area known as the Smackover.
