VHGI Energy has signed an agreement with Outdoor Resources of Crossville, Tennessee, to drill its initial well within the next three months.
Upon successful completion of this initial effort, the companies plan an additional four wells to be located in the Upper Cumberland Region of north central Tennessee.
The plan is for a shallow drilling program with a target of the Monteagle formation (750′), which is the most wide spread oil and gas producing formation in the Cumberland plateau.
The single well turnkey drilling agreement allows VHGI a 65% over riding royalty, with Outdoor Resources and the land owners holding the remaining interest.
Outdoor Resources will hold 100% of the working interest and VHGI has retained the right to acquire up to an additional four wells upon completion of the initial effort.
