Nitro Petroleum Incorporated (Nitro) is a development-stage company engaged in the acquisition and exploration of gas and oil properties. The Company had entered into an acreage participation agreement with REO Energy, Ltd. as a holder of approximately 2,000 acres of mineral leases in and around Montague County, Texas (the Gross Area). Nitro purchased 50% of the REO Energy’s leasehold interest in the Gross Area (the Assigned Acreage). Additionally, it acquired a 10% working interest in four wells (Inglish 4, Inglish 5, Inglish D1 and Inglish D2) and a 5% working interest in two wells (Craig Muncaster 6 and Craig Muncaster 7) drilled by REO Energy Ltd. on Barnett Shale formation leases.