DALLAS, TEXAS--(Marketwire -07/24/12)- AGR Tools Inc.'s (or "AGR" or the "Company") (AGRT)(AGRT) wholly owned subsidiary AGR Energy Holding Inc. (or "AGR Energy) is pleased to announce they have signed an agreement to acquire a three hundred (300) acre oil and gas lease in Navarro County, Texas from Corsicana Oil LLC (or the "Vendor"), collectively referred to as the Burke Lease.
Under the terms of the agreement, the Company would receive 100% ownership in the project by paying one hundred thousand dollars ($100,000) at closing, and up to two hundred thousand dollars ($200,000) out of revenue produced by the project. The company will also assume the vendor's plugging liability currently valued at two hundred thousand dollars ($200,000). There will be no common shares of AGR issued in connection with this agreement.
The Burke Project represents an opportunity to use enhanced recovery techniques to reactivate 51 historically producing wells, a much less uncertain opportunity than a completely undrilled project. Management believes with several steps of due diligence completed, the acquisition may close as soon as August 15th, 2012, or 30 days.
The consummation of the transaction will be contingent on the negotiation of final acquisition documents.
Mr. Vern Wilson, CEO of AGR commented:
"It has always been one of AGR's core principles to focus efforts in Texas as we have strong ties and knowledge within the region-- and the Burke project is a great overall fit and opportunity. Management is very familiar with the project and several steps in our due diligence process are completed which should allow for an efficient closing.
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: www.agrenergycorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements made in this release that relate to future plans, events, financial results or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are based upon current information and expectations. Actual results may differ materially from those anticipated as a result of certain risks and uncertainties. Investors should also be aware that while the Company from time to time does communicate with securities analysts, it is against the Company's policy to disclose to them any material non-public information or other confidential commercial information. Investors should not assume that the Company agrees with any report issued by any analyst or with any statements, projections, forecasts or opinions contained in any such report.