America Resources Exploration Inc (OTCMKTS:AREN) reported that it bought a producing oil field, The Harris Leases based in Callahan County. The leased area totals nearly 700 acres and has one SWD well and six shallow wells.
America Resources stated that the company will release 500,000 shares so as to complete the acquisition process. The shares will be issued at a price of 0.97 per share, valuing this acquisition deal at $485,000. It covers all equipment on the leases and the NRI is close to 79%.
Huang Yu, the CEO said that they intends to develop this new acreage as they believe the previous owners have not tapped its full potential. These leases are situated close to company‚Äôs recently bought Snyder leases, which the geologist projects may hold almost 4 million barrels of oil.
America Resources has engaged Randy Chillion, a petroleum engineer as a reserve estimator at BP. He is assigned with the job of assessing the potential reserves of acquired oil field. Also, the company will hire a new operator to look after pumping of oil on asset and provide a quote for a potential rework plan for the six wells currently on-site.
After remaining in oblivion for months, America Resources Exploration Inc (OTCMKTS:AREN) stock fetched attention of investors in July. The increased attention and up move on the chart can be attributed to paid promotional campaign, the first email of which was recorded on August 4. There are numerous outfits that are touting AREN, but it is one single company after this paid campaign. This entity is none other than one Intraday Holdings Ltd, and the compensation paid is between $25,000 and $65,000.
The company focuses on the acquisition of assets in areas that have large oil reserves and drilling potential. In early morning session on Tuesday, the stock price of America Resources is trading deep in red, down over 9%.