Paradigm has started the work program on the Navarro County Properties under the Joint Venture Oil Production Program agreement the company recently entered into and announced on March 21, 2011.
Equipment including double rigs have entered the properties to prepare the 56 previously producing and now idle wells, repair the infrastructure and ready the roads for the Transportable Enhanced Oil Recovery (T-EOR) Platform.
The company expects to be in a position to begin producing from these wells in the company's 2Q.
Under the terms of the agreement, Paradigm will receive 70% of the net revenue stream and the lease owner will receive 30% on the first 700 barrels of oil sold. After 700 barrels of oil have been sold, Paradigm will then retain 100% of the net revenue stream. Paradigm will be assigned these leases and will operate the properties under their bond.
"With the price of Oil at these levels, this program should be very profitable for us," said Paradigm's President Ron Polli, "we believe our T-EOR platform is an excellent system to produce Oil in a quick and cost effective manner and are looking forward to its deployment and expanding our fleet."
The Company has launched this program in the state of Texas and will be pursuing relationships in other states and countries to roll out these programs further.
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