The acquisition in Wyoming gives Galaxy approximately a 65% working interest in the Buffalo Run project, which has 19 wells drilled and completed and another 25 wells in various stages of completion, and a 50% working interest in the Dutch Creek project, which has 13 wells drilled and completed and another four wells in various stages of completion. Both projects are being developed by Continental Industries, LC of Casper, Wyoming. The leases and wells are being acquired from Continental for three million shares of restricted Galaxy common stock and $2.7 million in future payments.
Galaxy has contracted to retain Continental as its operator to develop the Buffalo Run and Dutch Creek acreage, and it will also employ Continental as operator on other Powder River Basin leases.
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