As per the terms of the MOU, the company has the exclusive right until July 29, 2010, to acquire the leases for an agreed cash consideration. During such time, the company shall perform customary due diligence for the transaction.
The leases are made up of a number of shallow oil wells that currently produce an aggregate twenty-five barrels of oil per day. The company believes that there is additional development opportunities within these leases and that with minimal expenditures, the current operations may be improved to increase the oil production.
The company said that it has also planned to utilize technology provided by QortechOil in order to significantly increase the yields. The technology is unique in that it causes an electromagnetic variance in polarity to influence the fluids below the surface, and is well suited for shallow wells of this type.
