Eagle Oil Holding announced that its Farmout partner Questus expects to commence on the "work-over" of five wells this month. The specific work to be performed is dependent upon the condition of each well, but includes well cleaning and servicing submersible pumps. As the work-overs are completed, the wells will be brought back into production.
According to Eagle President Brian Wilmot "the commencement of field work by Questus is a major step for Eagle Oil and represents the culmination of two and one-half years worth of effort to restore the production of oil from our East Texas oil field." All oil produced from the wells will be stored on the Company's property until permission to sell is granted by the Texas Rail Road Commission, which is expected once compliance requirements are completed. The Company's Farmout Agreement with Questus covers up to 120 of the 173 wells owned by the Company.
The Company also announced that it has terminated its Farmout agreement with Nitro Capital Partners for lack of payment. The Nitro agreement covered up to 20 additional wells not included with the Questus Agreement.
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