Oncolin has made an offer to acquire a 100% working interest in a two year lease for the mineral rights on a 300 acre tract which has an estimated 500,000 gross barrels of potential oil reserves.
This prospect, located in South Louisiana, will be drilled to test the Wilcox sands at approximately 10,000 feet and will be structurally high to wells in the area that produced a combined total of approximately 1,000,000 barrels of oil. The company would have a 100% working interest and a 75% net revenue interest in this prospect.
The potential future gross revenue of this prospect, if successful, equates to more than $25,000,000 based upon today's oil and gas prices and an estimated 500,000 gross barrels of potential oil reserves. This transaction will also be subject to the company completing its due diligence.
The company is continuing to build its prospect inventory and focus on developing or "rehabbing" fields that provide the best economics taking the current oil & gas prices into consideration and also the ability to procure the necessary leases. The company will prioritize the leasing and development of these fields after conducting field studies and securing the necessary funding to proceed.
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