Freestone Acquires Oil Well, Lease in Mitchell County, Texas


Mitchell #1-H
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Freestone Resources Inc. has acquired the Byrd A1 oil well, located in the Turner-Gregory field in Mitchell County, Texas. The purchase of this well includes all surface and well equipment, an 80-acre lease with 100% of the working interest and an 83.4% net mineral lease. The well is drilled to a depth of 2900 feet which exploits the historically prolific Clear Fork formation.

The Byrd A1 was drilled in March of 1972 and has produced over 26,000 barrels of oil. The well was purchased as a work-over prospect due to its high production potential and unit size. Freestone intends to resume and increase the production of this well by re-working the well and utilizing modern production enhancing techniques, such as Petrozene to eliminate any paraffin or asphaltene restriction which has occurred over the past thirty years.

The greatest profit potential in this prospect, however, is the 80-acre unit. The Byrd A1 is the only well drilled in this unit, which can be drilled on 10-acre well spacings, allowing Freestone to drill seven additional wells. Conservatively, these wells could push the production of this unit to approximately 30 barrels of oil per day, which could potentially yield $1800.00 in gross revenue per day or $657,000.00 gross revenue per year. Work-over of the Byrd A1 will commence as quickly as possible to ensure a quick return on this investment. We will certainly keep shareholders informed of all activities taking place with this well as they occur.

Freestone Resources Inc. filings were released to be in place on Edgar. Freestone is working diligently to meet the requirement of becoming a full reporting company.

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