Globalgroup Investment Holdings, Inc. announced that its subsidiary Sovereign Oil Corp has begun re-working O&G wells in Kansas. Initially two of the ten wells are now under secondary recovery drilling operations. Sovereign expects to have the re-work completed by the end of the month.
Under the terms of the acquisition of the KS JV leases, the company received a fifty- percent working interest in the O&G wells for its investment. The JV plans to rework all 10 oil wells by the end of 2012.
Fred Rackers, President of Globalgroup Investment Holdings, Inc., stated, “This secondary recovery drilling of the initial two wells in Kansas oilfields is just the beginning and reflects GIHI’s commitment to its subsidiary Sovereign Oil Corp.” Mr. Rackers continued, “This JV allows the company to utilize its assets in both the IT service industry division and now will involve our subsidiary O&G division as well.”
Upon completing the re-works and drilling on the 10 JV wells, GIHI’s petroleum division expects annual revenues of approx USD 300,000.