The letter of intent sets out the substantive terms of a Formal Agreement ("Agreement") that Eldorado and Victory will complete and execute within 60 days. Under the Agreement, Victory will be required to conduct up to one hundred thousand dollars ($100,000.00) for seismic evaluation to determine the first three drilling targets. In exchange, Victory will receive 50% of the mineral rights of all hydrocarbon deposits on the first 8 sections, approximately 5,000 acres of land. During the evaluation of the drilling targets, and including the time to drill the first 3 wells, Victory Energy Corporation will have the ability to exercise its irrevocable option to lease up to a total of 100,000 acres of mineral rights within the Palo Duro Basin from Eldorado and its partners.
"With the ability to lease up to 100,000 acres in Texas, coupled with the 138,000 acres Victory has in Montana, the Company is in an extremely attractive position within the petroleum industry for growth and providing enhanced shareholder value through future asset development," stated Jon Fullenkamp, President of Victory Energy Corporation.
Victory Energy is a publicly traded, developmental-stage petroleum company primarily dedicated to energy-related opportunities.
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