Larry Wise, President of Nitro Petroleum, stated that Nitro has entered into a Letter of Intent for an oilfield development project in Pottawatomie County, Oklahoma with Toro Ventures Inc. of Seattle, Washington.
This is a turnkey agreement whereby Toro will acquire a 60% working interest in the Crown Lease for $250,000.
The pending agreement provides that Nitro will remain as operator. Nitro will carry out remedial reworks on Crown #1 and #3. The wells will be re-entered and re-equipped in the Hunton, Lime and 1st Wilcox Sand. A third well will be converted into a salt water disposal well. In addition, the rework program is to include installing tank battery systems, electrification, and lying of pipelines and all necessary equipment needed to put wells back in production.
The Letter of Intent contemplates that this oilfield program will commence on or before March 1, 2008.
The Letter will provide TORO with the right to participate in subsequent offset wells to be drilled on the Crown Lease.
Larry Wise stated that this venture by TORO enables Nitro to participate up to 40% working interest in future production of these 2 wells in addition to production from future well locations.
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