Pilgrim Petroleum Corporation, an independent oil and gas exploration and production company, announced it has signed a Letter of Intent to acquire a 70% working interest in 8000 acres on Wilbarger County in Texas.
This property has a history of great production and significant reserves. The Palo Duro Basin is located in the Texas Panhandle district and is bound on the north by the Amarillo-Wichita Uplift in Oklahoma, to the south by the Matador Arch-Permian Basin in West Texas. The Palo Duro Basin prospect, which is currently being evaluated for further development, has been compared to the Barnett Shale discovery. Barnett Shale is estimated to contain some 30 trillion cubic feet of natural gas. Management believes Palo Duro could prove to be one of the largest natural gas deposits in North America.
Rafael Pinedo, Pilgrim Petroleum CEO-President, said, "A big step for Pilgrim recognizing how difficult it is to find a good property with the current oil prices, we will focus on large-scale oil and gas projects with significant resource potential and continue to acquire properties and bring our wells on line throughout 2008 in order to increase our residual revenue." Currently, Pilgrim Petroleum has modest levels of production from this area. In addition, the board of the directors is currently reviewing additional dividend options for holders of common stock and new additions to management.
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