Paradigm to Acquire Navarro County Lease
Paradigm has entered into a Letter of Intent Agreement to acquire the Skinner Lease located in Navarro County, Texas.
The Skinner lease is a 70 acre lease that was previously producing 450 barrels of oil per month from 11 existing wellbores. Initially the property produced at a rate of 1500 barrels of oil per month. The Lease comes complete with fully equipped pumping units on the well bores and the necessary infrastructure to allow for production turn on.
The Company plans to rework the existing wells and test each well utilizing their Transportable Enhanced Oil Recovery Platform (T-EOR) to determine each wells production rate. Additional enhanced oil recovery techniques will then be applied. The Company believes initially production rates of 450 barrels per month can be achieved with upward growth expected with further treatment and methods.
"Since the released our Joint Venture Oil Production Program that utilizes the Transportable Enhanced Oil Recovery Platform, we have been introduced to a number of opportunities in Navarro County. With the recent signing of 2 Joint Venture Oil Production agreements and the Oil production acquisition LOI we announced on April 5, 2011 it makes sense to build our portfolio in this region," said Paradigms President and CEO Ron Polli, "We are excited about the number of opportunities we are reviewing that appear to fit our criteria and as a result are attempting to advance our activities to enable us grow our portfolio and asset value."
A definitive purchase agreement is to be completed over the next 45 days at which time terms of the agreement will be disclosed. On closing of the definitive agreement, Paradigm will be assigned the lease and operate the property under their bond.