Eagle Oil Holding Company Announces Completed Agreement to Develop Texas Oil Field
RENO, Nev., April 15, 2011 /PRNewswire via COMTEX/ -- Eagle Oil Holding Company, Inc. /quotes/comstock/11i!egoh (EGOH 0.01, +0.0011, +8.33%) (the "Company") today announced the formal signing of a full Agreement with Nitro Capital Partners Inc., a Canadian Company, (Nitro) to provide funding for operations on the East Texas field with a "FarmOut" agreement (operations agreement).
The Company plans to restart oil pumping operations at its East Texas oil field by partnering with Nitro and an experienced oil field service company on a specific well by well procedure. Nitro is preparing to begin on the first 5 wells. Additional wells can be added as funding is provided by Nitro. Nitro is providing the necessary capital and resources to restore oil pumping operations with no additional capital investment by the Company. The Company would use an independent operator to get the field into production. Nitro would share in the revenue generated by the field production. Nitro is planning on startup in the summer of this year.
Nitro is affiliated with a German consortium that has been desirous of entering the US market in oil and gas production and can provide new sources of developmental capital to Eagle Oil.