Nitro Petroleum, Incorporated has finalized a funding agreement with Precision Petroleum Corporation. Under the agreement, Precision has the right to purchase 50% of Phase I of the recently announced Powder River Basin Project in southern Montana.
The initial project (Phase I) has an estimated cost of $10,985,000 for drilling and completion. The program is scheduled to start by late spring or early summer with the drilling of ten (10) exploratory wells. After the initial 10 wells are drilled, Precision has the first right of refusal on the drilling of Phase II. The leases being drilled are highly prospective as they are located near existing oil and gas production from three oil and gas fields located on the Hardin Platform. Those oil and gas fields are the Marus Snyder Oil Field, the Soap Creek Oil Field, and the Hardin Gas Field, which has produced gas for many years from the Hardin Sandstone.
Larry Wise, President of Nitro, stated, "By finding a funding partner so quickly after acquiring these leases, Nitro can accelerate its work program on this very exciting project. The company is finalizing its budget and timeline and is filing all the necessary paperwork to acquire its drilling permits as soon as possible."
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