Henderson, NV (PRWEB) October 06, 2011
Leland Energy, Inc., through its subsidiary Leland Kentucky Holdings, Inc., enters into a purchase contract to acquire 7 producing oil wells. The 225 acre project is in the heart of the very prolific Parker-Etter Field, Moodyville Quadrangle in Pickett County, Tennessee.
The shallow wells being purchased have initial production numbers from 25 to 70 barrels per day and are currently producing over 150 barrels per month. The area is subject to 5 acre spacing requirements, and as such, provides for 11 additional “infill” locations for development.
In Pickett County, which has seen resurgence in drilling activity, Leland will primarily target the Knox formation. Acquisition price, re-work budget, and additional drilling activity will cost Leland between $2 million and $2.5 million.
Operations in this area within the last year have had a number of wells producing 1000, 1200, and 1500 barrels per month. The primary transporter of oil in this area is Barrett Oil Company.
The acquisition is scheduled for closing in the last week of November. “With the current production already on site, the re-work capabilities of existing wells, and the number of infill locations available, this lease has the potential to generate a combined total of $13M to $15 million for the Company and its partners over the next 10 to 12 years,” said Mr. Lon Stein, V.P., Client Relations. He adds, “Leland has worked in the Appalachian basin for over 35 years. We are pleased to expand on our operations in this area.”
The seller is V & T Oil and Gas Company out of Columbia, Kentucky. Leland’s strategic partner for its Tennessee and Kentucky operations is B & J Oil Company out of Campbellsville, Kentucky.
Leland has operations in Tennessee, Kentucky, W. Virginia, Colorado and offices in Henderson, Nevada and Beverly Hills, California. For additional information visit http://www.lelandenergy.com.