Pilgrim to acquire Palo Duro Basin

Texas based oil and gas exploration and development (E&D) company, Pilgrim Petroleum Corporation has signed a Letter of Intent to acquire a 100% working interest in 1,395 acres on Archer and Wilbarger Counties in Texas. This property has a history of great production and has existing well bores available for reentry.

The Palo Duro Basin is located in the Texas Panhandle district and is bound on the north by the Amarillo-Wichita Uplift in Oklahoma, to the south by the Matador Arch-Permian Basin in West Texas. The Palo Duro Basin prospect, which is currently being evaluated for further development, has been compared to the Barnett Shale discovery. Barnett Shale is estimated to contain some 30 trillion cubic feet of natural gas. Management believes Palo Duro could prove to be one of the largest natural gas deposits in North America.

Currently, Pilgrim Petroleum has modest levels of production from this area and will start to use enhanced oil recovery techniques to boost additional production levels in the area.