WEST SUSSEX, United Kingdom, Aug. 1, 2009 (GLOBE NEWSWIRE) -- Avro Energy Inc. (OTCBB:AVOE) is pleased to provide a corporate update with respect to its activities in the Southern United States.
The Company has entered into a letter of agreement to acquire various oil leases near Hosston, Louisiana, from a private oil and gas operator. Under the terms of the agreement, the Company has agreed to pay a total of $100,000 upon the signing of a formal agreement on or before August 30, 2009.
Under the terms of the agreement, the Company will purchase the Hoss Holmes Lease located near Hosston, Louisiana. The purchase includes 22 wells, of which 13 wells are producing, with another 7 wells needing production equipment, and 2 wells which are disposal wells. In addition, the agreement includes the purchase of all of the equipment associated with these wells.
Also, as part of the agreement, the Company has been granted the option to purchase all of the remaining oil and gas assets of a private Louisiana oil and gas operator for $2,500,000. The additional leases will include 180 wells, currently perforated in the Nachatosh formation as well as all of the oil production and workover equipment owned by the private corporation. All oil and gas leases covered in this agreement are subject to a 20% overriding royalty.
The Company has engaged an independent oil and gas consultant for its pending operations in Northern Louisiana. The purpose of the engagement is to complete a detailed review of all the wells and equipment related to a formal agreement for the acquisition of oil and gas assets, as previously announced by the Company.
In addition, the Company has entered into negotiations with a private oil and gas operator to acquire 11 oil wells and equipment on 800 acres of oil and gas leases located near Fouke, Miller County, Arkansas, USA. Past production in these wells have come from formations at depths of 3800 ft. and 6800 ft. Current production figures, well logs and a full equipment list have been requested from the operator. Once an agreement is reached on this the Company will issue a detailed news release setting out the terms of the agreement.
This potential acquisition is located approximately 30 miles north of the Company's previously announced pending operations in Hosston, Louisiana, in the ArkLaTex oil-producing region of the United States. The Company believes this acquisition will complement the Company's proposed operations, as well as allow for the sharing of resources, equipment, personnel and management.
Donny Fitzgerald, a director of the Company, has also been appointed as Vice President of Operations for the United States of America. Mr. Fitzgerald has over 20 years experience in Oil and Gas Operations in the United States and will be a valuable asset to the Company's growth.
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.
About Avro Energy Inc.
Avro Energy Inc. is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America. Avro's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent low risk opportunities for the Company and its shareholders. In addition, Avro aims to seek larger projects that can be developed and produced with Joint Venture partners. More information about the Company is available at its corporate website at http://www.avroenergy.com.
Forward-Looking Statements
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The OTC BB has not reviewed or does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.