Eagle Oil announced the formal re-launching of its oil production business to take advantage of near record prices for crude oil. The Company's new, multi-pronged strategic plan for restoring field operations and shareholder value, which is being implemented immediately, includes:
- Field Operations – The Company's plans to restart oil pumping operations at its East Texas oil field by partnering with an experienced oil field service company which would provide the necessary capital and resources to restore oil pumping operations with no capital investment by the Company. The Company is currently in late stage negotiations with a potential partner capable of providing the resources needed to renovate the Company's 173 oil wells and restart pumping operations.
- Debt Restructuring - The Company has adopted a debt restructuring plan designed to eliminate most of the Company's long term debt by converting it into shares of Eagle Oil common stock at a price which is several times higher than the current market price for Eagle Oil common stock. The plan requires that at least 90% of creditors in interest agree to the plan. Several creditors have already agreed and the Company believes that once this plan is fully adopted by creditors, the elimination of essentially all of the Company's long-term debt, will enhance the Company's ability to seek additional funding and business opportunities.
- Financial Reporting and OTCBB Listing – The Company intends to seek re-listing on the OTCQB by restoring the Company to full '34 Act compliance within the next few months.
President Brian Wilmot said, "With crude oil prices are approaching record high levels, we believe this to be the right time to re-launch Eagle Oil's business. We believe that our three-prong business strategy of reducing debt, restarting oil operations and re-listing the Company on the OTCBB will greatly enhance shareholder value."