WW Oil and Gas has entered into a letter of intent agreement with Olney Oil & Gas Producers of Texas for the acquisition of the Wolf lease properties in Young County, Texas, US.
The 300-acre property is currently producing three to four barrels of oil per day. The proposal calls for the purchase of the Wolf properties over a four-month period. WW Oil & Gas would acquire 25% ownership as each payment is realized.
WW Oil and Gas anticipates the lease to eventually produce up to 20 barrels of oil per day as additional wells on the property are brought to stream. The Wolf lease has shallow formation characteristics. The company said that the shallow formations are far more cost effective to drill and exploit. WW Oil & Gas expects a conclusion to the agreement to be reached and attain 100% ownership of the Wolf lease property by May 1, 2008.