CGrowth Capital, Inc. announced that it has entered into a Letter of Intent (LOI) for the purchase of an initial 2,064 acres of Wyoming oil leases with 65 offset drilling locations. The leases, located in the Powder River Basin, include active wells with current production along with the associated fixtures, pumps, vehicles, and tanks for the current field operation. Geological reports for the area are estimating oil potential up to seven million barrels of oil.

Current production on the 100% working interest leases is 12-13 BOPD. A revitalization plan for the existing wells anticipates increasing the production to over 100 BOPD. In addition to these current leases, the company will maintain a 20% working interest in a group of wells currently in a revitalization plan with a third party in the field.

The company is anticipating the net interest in these wells to be 35 BOPD upon completion of the revitalization. The execution of the LOI is the second oil project announcement in the past month. The initial agreement, located in Young County, Texas, is in process with final financing details being worked through.

The company is working towards the finalization of both contracts during the third quarter.