AGR Energy Enters Agreement to Acquire 2,026 Acre Oil & Gas Lease
June 19 2012 - 04:47PM
Marketwired
AGR Tools Inc's (or "AGR" or the "Company")
(OTCBB:AGRT)(OTCQB:AGRT) wholly owned subsidiary AGR Energy Holding
Inc. (or "AGR Energy) is pleased to announce they have signed a
memorandum of understanding to acquire a two thousand twenty six
(2,026) acre oil and gas lease in, Corsicana, Texas from BNMW
Resources, LLC (or the "Vendor").
Under the terms of the agreement, the Company shall pay four
hundred fifty thousand dollars ($450,000) for a seventy seven
percent (77%) net revenue interest in the potential production from
the four (4) parcels, two thousand twenty six (2,026) acre property
collectively called the "Smackover Lease."
Management believes the Smackover lease to be a strong
acquisition as it lies on strike with other companies producing oil
in the area-- both along the same fault. Based on company prepared
as well as independently prepared reports, the Company believes
that per the report, Smackover may contain significant oil and gas
reserves which may yield up to two million barrels of oil
(2,000,000 BO) and may yield up to thirty eight billion cubic feet
(38,000,000,000 Ft3) of natural gas, and create the potential for a
seven to eight well drilling program which would require a capital
budget of roughly fifteen million four hundred thousand dollars
($15,400,000).
The consummating of the transaction will be contingent on the
acquisition of a title opinion acceptable to legal counsel and the
negotiation of the final acquisition documents.
Mr. Vern Wilson, CEO of AGR commented:
"In conjunction with the lease owners, I have performed
significant amounts of due diligence on the Smackover lease over
the past several years. I have surveyed the first drilling site and
have visited the other drill sites -- I am very familiar with the
property as well as the local geology.
"Assuming we utilize our non-dilutive financing agreement with
Qeteras, or a similar instrument, the company may not need to issue
any stock to acquire or develop this property, a strategy we seek
to use."
About AGR Tools Inc., and its wholly owned subsidiary, AGR
Energy Holdings Inc:
AGR Tools/ AGR Energy Holding's mission is to deliver a
competitive and sustainable rate of return to shareholders by
developing, acquiring and exploring for oil and gas resources vital
to the world's health and welfare.
AGR Energy Holding's strategic goal is to expand our reserve
base and increase our cash flow through investment in and
management of exploration, acquisition and exploitation of new and
existing oil and gas assets.
For further information please visit: www.agrenergycorp.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995:
Statements made in this release that relate to future plans,
events, financial results or performance are forward-looking
statements as defined under the Private Securities Litigation
Reform Act of 1995. These statements are based upon current
information and expectations. Actual results may differ materially
from those anticipated as a result of certain risks and
uncertainties. Investors should also be aware that while the
Company from time to time does communicate with securities
analysts, it is against the Company's policy to disclose to them
any material non-public information or other confidential
commercial information. Investors should not assume that the
Company agrees with any report issued by any analyst or with any
statements, projections, forecasts or opinions contained in any
such report.
Contacts: AGR Tools Inc. Vern Wilson CEOVern@AGRenergycorp.com
www.agrenergycorp.com Investor Inquiries: Circadian Group Tyler M.
Troup, B.Comm Toll Free: 1-866-865-2780Tyler@Circadian-Group.com
AGRT due diligence
portal:http://www.circadian-group.com/client.html