American Standard has acquired 10,147.66 acres located within eight (8) counties of North Dakota (the "Bakken") from Geronimo Holding Corporation (the "Seller"). ASEN acquired the property for approximately $7,418,000 in cash and Company stock making the average price between $700 and $750 per acre, which is below the current market per-acre price for prolific Bakken minerals.
The acquisition represents the single largest Bakken acquisition to date for the Company and increases its Bakken holdings by more than 160% bringing its total land holdings in the Bakken to over 16,000 acres. The location of the acreage places the Company near or adjacent to signification operations within each of the counties represented in the acquisition including Mountrail, Williams, Southern Burke and McKenzie Counties.
The acquisition also significantly increases the Company's ability to expand beyond its current 93 plus gross wells in which it participates. There are currently three (3) additional wells in various stages of drilling within the acreage represented in this latest acquisition. This land acquisition also complements the Company's most recent acquisition of producing properties by allowing the Company to focus both on current revenue streams as well as long term growth.
Scott Feldhacker, CEO of American Standard Energy Corp. stated, "This is an exciting acquisition for our company. It provides us the opportunity to further increase our operational outlook and will provide growth in both our revenue and reserve outlook. Demonstrating the value of our industry relationships, this further proves our ability to acquire key leaseholds below current market prices. Strategically purchasing leaseholds around, under and within the development path of key operators such as Brigham, Continental, EOG, Whiting and Petro-Hunt further quantifies the value of our Bakken holdings."
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