America Resources Exploration Inc (OTCMKTS:AREN) announced that it had acquired a producing oil field named the Harris Leases, situated in Callahan County, Texas. The oil-field is spread across the 700-acre land and comes with one SWD well and six shallow wells.
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The transaction is valued around $485,000, which is why America Resources Exploration has decided to issue 500,000 shares to the sellers at a price of 0.97 per share. As per the reports, all the necessary equipment needed at the site and available already, have been included in this price. The total NRI comes around 79 percent. A couple of other pay zones for these leases make room for Cisco Formations and Strawn.
The senior management of the company is delighted to announce this news and hopes that this transaction will help it achieve desired results. According to Huang Yu, Chief Executive Officer, America Resources, it’s a great opportunity for the company to develop this oil field into a fully working site. In Yu’s opinion, previous owners might not have explored this site to its full potential, but America Resources can do that.
America Resources also acquired Snyder leases in the past, and this new site is situated right adjacent to them. Company’s geologists believe that those sites may still have 4.1 million barrels of oil, which supports Yu’s argument of exploring this new oil-field from a new angel and fully use its potential.
America Resources Exploration Inc (OTCMKTS:AREN) doesn’t want to leave any stone unturned, which is why it has appointed Mr. Randy Chillion, a petroleum engineer who has over 36 years of experience, as the reserve estimator. The management team believes that he can help it explore the 100% potential of this oil field in the easiest and most hassle-free manner.
A lot of development work is needed to be executed at this site to transform it into an active oil field. Details of all such steps will be announced shortly.