DALLAS, TEXAS — (Marketwire) — 05/30/12 — AGR Tools Inc. (or “AGR” or the “Company”) (OTCQB: AGRT)(OTCBB: AGRT) has entered into a letter of intent with Consolidated Oil and Gas (or “COGC”) to acquire a 80% ownership interest in the 700 acre Paul Lease in Overton County, Tennessee.
In consideration for ownership stake AGR is to issue COGC 5mm restricted common shares. With 20 historically producing wells on a small portion of the acreage, AGR has initial plans to drill and complete 10 new wells at a total capital cost of $1.5mm, with the projected partnership revenue from these 10 wells over a 5 year time frame of roughly $7mm.
Mr. Vern Wilson, CEO commented:
“The area of the Paul lease and the Alpine Quadrangle has considerable potential. Wells are shallow with substantial productivity, and are relatively inexpensive to drill.
“We are very excited about Tennessee as it has respectable revenue potential compared to our planned investment– as well as great blue-sky potential throughout the region.
“Over 25 years of working knowledge of the Paul lease geology along with local experience will provide a sound basis to form an exploration and production program.
About AGR Tools Inc, and its wholly owned subsidiary, AGR Energy Holdings Inc:
AGR Tools/ AGR Energy Holding–s mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and gas resources vital to the world–s health and welfare.
AGR Energy Holding–s strategic goal is to expand our reserve base and increase our cash flow through investment in and management of exploration, acquisition and exploitation of new and existing oil and gas assets.
For further information please visit:
AGRT due diligence portal: Coming soon!
Contacts:
AGR Tools Inc.
Vern Wilson
CEO
Investor Inquiries:
Circadian Group
Tyler M. Troup, B.Comm
Toll Free: 1-866-865-2780