Petroleum Consolidators of America, a gasoline station/convenience store operator, has signed a letter of intent to acquire a 45% working interest in an oil well in the areas of Scott, Fentress and Morgan Counties, Tennessee, US.
The company has said that the well, which is projected to produce between six and 12 barrels of sweet light crude per day, offers Petroleum Consolidators of America immediate cash flow and a short-term return on its investment.
The company believes that investing in this asset will also offer it the opportunity to see price appreciation as crude moves higher. Furthermore, the operator will begin the process of equipping the well for the sale of natural gas which the company believes will also be produced.
David Cohen, president and CEO of Petroleum Consolidators, said: “We are excited to have been able to enter into this letter of intent and look forward to finalizing the acquisition in the next 60 days. This marks an additional development in diversifying our revenue stream and although this achievement does not generate a multi-million dollar revenue stream, we see this as the first step in the rung of a tall ladder of further oil well expansion.”
Petroleum Consolidators of America, is a gasoline station/convenience store operator which is implementing a targeted acquisition strategy to create a portfolio of consolidated retail gasoline facilities, producing oil wells and a wholesale fuel distributorship that will benefit from substantial operating efficiencies.
