Avro Energy Acquires Deep Producing Oil Wells in Southern Arkansas VIVIAN, La., Oct 24, 2009 (GlobeNewswire via COMTEX) -- Avro Energy, Inc. /quotes/comstock/11k!avoe (AVOE 1.10, -0.08, -6.41%) is pleased to announce that it has signed a letter of agreement to acquire eleven producible deep oil wells north of Hosston, Louisiana, where the company already has operations. These eleven producible deep oil wells are located in South Arkansas. Seven of these wells are currently in production with the other four capable of production after work over operations. In addition, the Company will acquire three disposal wells with this package. The deepest of these wells produces from the Smackover formation at 7800 feet, which fits with the Company's plan to look at deeper horizons for zones capable of larger production. The producing wells are productive from the Rodessa, Paluxy, Pettit, Smackover, and Tuscaloosa Formations.
A preliminary review of the well logs indicates other zones of interest. To this end, and further to the Company's plan to increase production on these wells, a local Petroleum Geologist has been retained to review well logs and to prepare an isopach for possible additional drilling locations.
By the terms of this agreement, the Company is required to pay $385,000, which must be paid over a seven month period, with the first payment of $50,000 due on November 24, 2009. Starting November 1, 2009, the Company will start receiving the production from these wells. This transaction is subject to the Company receiving a satisfactory title opinion.
The Company is continuing to negotiate on other deep projects in the ArkLaTex region of Louisiana and will keep its shareholders updated.
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.
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