America Resources Exploration Inc. acquired the Harris leases in a producing oil field in Texas, the company said Sept. 3.

The leases are in Callahan County on about 700 acres, and there are six shallow wells in the Jane's Cross Plains Sand pay zone. Other pay zones for these leases include the Strawn and Cisco formations. There is one saltwater disposal well.

The company will issue 500,000 shares, priced at 97 cents each, to the sellers, for a $485,000 purchase price. All equipment on the leases is included and the net revenue interest is about 79%.

"We are looking forward to developing this new acreage as we believe the previous owners may not have tapped its full potential," said Huang Yu, CEO. "These leases are adjacent to our newly acquired Snyder leases, which our geologist estimates may hold as much as 4.1 million barrels of oil."

Independent petroleum engineer Randy Chillion will assess the field’s potential reserves. He was a reserve estimator at BP for 36 years, the company added.

A new operator will pump oil on the property and submit a quote for a potential rework program for the six wells onsite.

America Resources Exploration Inc. is based in Houston.