China Dongsheng International Inc. announced that the company has signed a Strategic Partnership with Stallion Energy Group, Inc. (“Stallion”) of Houston Texas, for a Working Interest to develop oil production in Frio County, southwest Texas. The drill-ready leasehold is located within an area of two of the most productive oilfields in the San Antonio Oil and Gas district, with over 100 million barrels and 400 billion cubic feet of gas produced. The multimillion-barrel potential of the project was identified after critical evaluation, mapping and analysis of a large petrophysical database of well logs, mud logs and production analogues completed by Texas based team of petroleum engineers and a geologist with a combined 90+ years of experience.

The plan is to drill vertical wells using a 40-acre spacing within a 640 acre area of the lease portfolioacquired by Stallion. Primary production target will be the shallow, oil rich Olmos Formation, which has been a consistent oil producing strata and continues to be an active exploration target in the area. The target horizon offers low risk, shallow conventional oil production from several pay zones identified by local offset logs.

Texas American Resources (now Trinity Oil & Gas) previously computed volumetric reserves for the Olmos in the direct lease area to have original oil in place (OOIP) of 15-27 million barrels per 640-acre section. At present, this volumetric calculation has not been re-verified by Stallion.