Adventure Energy Inks Lease, Drilling Deal for 100% of Up to 10 Oil Wells
Adventure Energy has leased 160 acres of mineral rights in Metcalfe County, Kentucky. In addition, the Company has entered into a drilling agreement with Rebell Oil of Kentucky.
Under the terms of the agreement, Rebell Oil will drill 5 oil wells with depths ranging from 800-1200 ft., with an option to drill an additional 5 wells. The engineering work has been completed, permits have been issued by the Kentucky Division of Oil and Gas Conservation, and site preparation has begun for all 5 drilling locations. Management anticipates that the spud-in and initial drilling on the J.L. Blaydes Well #1 will occur prior to the end of April with initial delivery of production by the end of May. Production estimates are for 12-18 BOE/day. The Company will maintain a 100% ``Working Interest'' in each of the wells.
"We are pleased to have entered this agreement with Rebell Oil,'' said Wayne Anderson, President of Adventure Energy, Inc. "Mr. Bell has been in the oil and gas industry for over 25 years and has a sterling reputation. The addition of the 160 acres fits perfectly within our expansion strategy for the Appalachian region. This is an exciting time for our company and shareholders as we sink the first bit into the ground under one of our drilling programs.''