The Graystone Company has begun re-working the oil wells it acquired in Kansas. The Company acquired a 50% working interest in up to 100 oil and gas leases in Kansas. The Company began re-working the oil wells to return the oil wells to commercial production. The initial re-working efforts have determined that the wells contain oil sufficient to begin commercial production. The company expects to provide an update of the wells production in the next 45-60 days. Additionally, the Company will update shareholders on the Company’s sale of silver and gold for the month of July.
Under the terms of the acquisition of the leases, the Company paid $700,000 for a 50-percent working interest in the oil and gas wells. The Company's cost of the rework and re-drilling is to be between $25,000 and $75,000 per oil well.
Paul Howarth, CEO of Graystone, stated, "The recovery and drilling in these shallow well Kansas oilfields is a great opportunity for the Company. The commercial production of these oil and gas wells will allow Graystone to improve the diversity of our holdings in natural resource commodity properties."
Upon the completion of re-working as needed all 100 wells, GYST’s petroleum division expects annual revenues of approximately $2,000,000.
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