The company said it had exercised an option to acquire a further 1000 acres near its Snell-Heirs project in Okfuskee County, Oklahoma, with another 4000 acres it could put its foot on.

“The proposed program is a continuation of the highly successful program carried out in 2004 where the eight wells drilled were all discoveries and are either in production already or in the process of being brought into production,” Tomahawk said this morning.

“The option, the first of 5 options covering 5,000 acres, is part of the enlarged participation in the Snell-Heirs project that Tomahawk negotiated in late 2004 which on proposed well spacings could allow the company to drill up to 125 wells in coming years.”

Tomahawk has 100% working interest (71.5% after royalties) in all its wells.

It said it would issue its US partner Metro Energy Ltd with 3 million shares, escrowed for 24 months, to exercise the option.