RENO, Nev., May 3, 2011 /PRNewswire/ -- Eagle Oil Holding Company, Inc. (OTC: EGOH) (the "Company") today announced the execution of a second "Farm Out" Agreement with Natural Springs Resources, a Canadian Company to provide funding for additional operations on our East Texas field.
This second Farm Out agreement will allow the Company to restart 5 additional oil wells by partnering with Natural, and an experienced oil field service company. Natural will begin work on the wells as funding is obtained later this year. Natural is providing the necessary capital and resources to restore the pumping operations with no additional capital investment by the Company. Natural would share in the revenue generated by the well production. Since the Natural agreement is well specific, and non-exclusive, the development will not interfere with the Nitro Capital Partners agreement or any other wells allocated to any future partners.
Natural is affiliated with a European group that has been desirous of entering the US market in oil and gas production and can provide new sources of developmental capital to Eagle Oil.
Eagle Oil (EGOH) (www.eagleoilholdingco.com) is an independent energy company in the active East Texas oil and gas region. The Company owns a 73% working interest in 173 wells on its 927 acres located in the Historic Woodbine Oil Field.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "should," "intends," "will," or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Contact: Eagle Oil Holding Company, Inc. (209) 736-4530
SOURCE Eagle Oil Holding Company, Inc.