Eagle Oil Receives Initial Payment from Questus
Eagle Oil has received an initial payment from Questus under the Farmout Agreement between the Company and Questus.
Pursuant to the Farmout Agreement, Questus will now begin the reconditioning of an initial group of 15 oil wells at the Company's East Texas field. In addition, Questus will also service the compliance requirements of the Texas Rail Road Commission.
The Questus Agreement represents the major part of the Company's new strategy to capitalize on its oil assets through outsourcing the reconditioning of its oil well and restoring pumping operations with no additional capital investment by the Company. The Questus Agreement will potentially cover up to 120 wells. The Company is also waiting for work to commence under farmout agreements with two additional parties for up to 20 additional wells not covered under the Questus Agreement.