Halio Energy Inc. announced the signing of a Farm-out Agreement to drill several high-priority oil and gas prospects in Oregon's Western Idaho Basin, conditional on the company obtaining financing on terms and conditions satisfactory to the company. The area covered by the agreement is approximately 57,000 acres, where 10 initial prospects have been identified. Halio can earn a 50% interest in the Project by funding the drilling of three conventional wells. Estimated drilling and completion costs for each well is $1 million. The wells will be drilled to a maximum depth of 6,000 feet. Subsequent to the drilling of the three initial wells, Halio will become the operator of the Project. Halio will also have the option to increase its working interest in the leases through direct purchase.