WHL Energy Ltd., Sydney, Australia, (Australia: WHN) plans to acquire a 50% interest in assets in East Texas from Glen Rose Petroleum Corp., Dallas, (Nasdaq: GLRP) for US$2.5 million.

The interest is in 2,560 acres in Wardlaw Field in Edwards County. WHL retains an area of mutual interest to allow for joint expansion of base activity and an option to participate in drilling deeper that the Glen Rose formation.

Four wells have already been permitted in the first phase in the north half of Section 7, north of Glen Rose’s current operations. The wells will be drilled in late August. The initial wells will help define the best locations for the first two producing units, each consisting of 13 wells featuring four injector wells and nine producing wells.

During the fourth quarter, a further 24 wells will be drilled to complete the first two producing units and four additional delineation wells will be drilled in other sections of phase one to define additional producing units.

Glen Rose chairman and chief executive Paul Watson says, “WHL is a company with a developing focus on enhanced oil recovery. They have recently acquired expertise that will assist us as we develop new ways of extracting the oil in place. Our current method of flooding utilizes the injection of nitrogen under pressure. Our results to date have been favorable. However, with the advice of leading professional institutions, we are researching other methods of extraction and production to maximize recovery of the reserves in place.”