RENO, Nev., July 12, 2011 /PRNewswire/ -- Eagle Oil Holding
Company, Inc. (OTC: EGOH) ("Company") provides the following update
on the oil field restoration to be performed by Questus Energy.
Under the Farmout Agreement, Questus will perform all work and
pay all costs associated with reconditioning an initial group of 15
existing oil wells in our East
Texas oil field. As part of the work, which the
Company expects to commence within the next two weeks, Questus will
perform required fluid level and integrity tests on 33 wells
located in the field as required by the Texas Railroad Commission.
Once these tests are satisfactorily completed, Questus will
be able to immediately restart pumping oil on five wells which are
already fully equipped. Pumping will restart on the ten additional
wells once they are re-equipped by Questus.
The Company expects pumping on the first five wells to commence
within 45 days and all 15 wells to be in production within 60 days.
The Company projects production to reach approximately 90
barrels per day once all 15 wells are reconditioned.
Additional groups of 10 wells will then be assigned to Questus,
up to a total of 104 wells. The Company believes that pumping
can resume at all 104 wells by November
2012.
The Company has also signed farmout agreements with two other
entities for a total of up to 40 additional wells.
About 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,"
"projects," "intends," "will," or "plans" to be uncertain and
forward-looking.
Contact: Eagle Oil Holding Company, Inc. (209) 736-4530
SOURCE Eagle Oil Holding Company, Inc.