SOURCE: Freestone Resources, Inc.

July 08, 2008 10:00 ET

Freestone Resources, Inc. (FSNR.PK) Acquires Producing Oil Wells and Leases

FAIRFIELD, TX--(Marketwire - July 8, 2008) - Freestone Resources, Inc. (PINKSHEETS: FSNR) would like to announce the acquisition of producing oil and gas leases in the Corsicana Shallow field in Navarro County, Texas. The Edens lease includes 1,287 acres that contain five proven zones. These include: the upper, middle, and lower Nacatoch formation, the Pecan Gap formation, as well as the Wolf City formation. Freestone will hold 100% of the working interest and a 75% net mineral lease. The purchase of this lease includes three producing wells and their surface equipment. Geological research conducted on this property indicates 20 feet of productive sands in at least three different formations. Representatives of Freestone, in conjunction with two geologists that specialize in this area, are working on a drilling program for this lease.

Freestone has also acquired a 16.5% working interest on adjacent leases within the Corsicana Shallow field. These leases have 88 wells drilled with 63 wells equipped and completed. Freestone is leading the work over program that will have each of these wells online within the next few months. Currently 21 wells have been worked over and brought online. An additional 200 wells could be drilled on this acreage. Representatives from Freestone are diligently working to acquire more proven leases in the state of Texas.

Freestone is in the process of selling the Byrd A1 well in order to focus operations in Navarro County. It has had a current production of 1.67 barrels of oil per day.

In addition, the viscosity results of Petrozene have proven to Freestone and potential clients the feasibility of decreasing the viscosity of heavy oils. Negotiations for contracts are currently under way. With oil and gas prices at their all time highs Freestone will continue to grow and expand oil and gas operations in conjunction with its line of chemical enhancements such as Petrozene.

SAFE HARBOR STATEMENTS:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Contact:

    Freestone Resources, Inc.
    Lloyd Lane
    903-389-6300
    Email Contact