The company said that the wells will be on-stream and producing gas within the next several months.
Apart from the producing wells, Nexgen will also be acquiring a 700-acre lease in Knox County for the future development of additional gas wells.
Next Generation Energy is acquiring ORRI (Over Riding Royalty Interests) in producing natural gas wells that have a long, steady, predictable level of production that would be expected to continue for many years.
By focusing on acquiring ORRI interests in proven producing gas wells, Nexgen will have no operational responsibilities for these gas wells, which will allow it to focus on an aggressive schedule of acquisitions.
The closing date is expected to occur no later than 15 March 2011.
