Avro Closes South Arkansas Acquisition
Avro has completed final payment and closed on its acquisition of the Eleven Deep Producing Oil Wells in South Arkansas. Under the terms of the agreement for this acquisition, a final payment of $235,000 for this acquisition was to be made on May 31, 2010. The Company has now made this payment and completed this acquisition.
About the Eleven Deep Producing Oil Wells
The Company holds a 100% working interest in eleven producible deep oil wells located in South Arkansas subject to landowner overriding royalties. In addition, the Company has three disposal wells with this package. The deepest of these wells produces from the Smackover formation at 7800 feet, which fits with the Company's plan to look at deeper horizons for zones capable of larger production. The producing wells are productive from the Rodessa, Paluxy, Pettit, Smackover, and Tuscaloosa Formations.
About the ArkLaTex Oil-Producing Region
The ArkLaTex is a U.S. socio-economic region where Arkansas, Louisiana, Texas, and Oklahoma intersect. The region is centered on the Shreveport/Bossier metropolitan area in Northwest Louisiana. The region's history is heavily linked with the oil industry. The geology associated with the deposition of sediments from the Mississippi River, in particular, makes this area an abundant source for the oil and gas industries, which leads to the high levels of oil production within the region.