Pilgrim Petroleum has signed a letter of intent to acquire a 70% working interest in 8000 acres Palo Duro Basin in Wilbarger County in Texas, US.
The Palo Duro Basin prospect, which is currently being evaluated for further development, has been compared to the Barnett Shale discovery. Barnett Shale is estimated to contain some 30 trillion cubic feet of natural gas. Management believes Palo Duro could prove to be one of the largest natural gas deposits in North America.
Rafael Pinedo, president and CEO of Pilgrim Petroleum, said: A big step for Pilgrim recognizing how difficult it is to find a good property with the current oil prices, we will focus on large-scale oil and gas projects with significant resource potential and continue to acquire properties and bring our wells on line throughout 2008 in order to increase our residual revenue.