Earthstone Buys Additional Stake in Montana
Earthstone reported that it has acquired an interest in another producing well in Montana. The Onstad 22-14 is located in the Divide Field in Sheridan County. The well has been shut-in for over three years, but produced approximately 15 to 20 barrels of oil per day when it was running. Earthstone acquired a 25% working interest in the well for approximately $38,000. Because of water production, the well is economically marginal; the majority of purchased value lying in capital equipment and Bakken lease rights. The spacing unit associated with the well is 320 acres. The Company previously disclosed the purchase of five producing wells in Sheridan County in January 2011.
"We are pleased to announce the acquisition of what we believe is another under-managed property," commented Ray Singleton, President of Earthstone Energy, Inc. "If, as we expect, we can overcome water disposal issues, we believe we can restore this well to production. Furthermore, based on its location and other enhancements we are pursuing in the area, we believe the value of this well will become much more substantial, especially as the horizontal Bakken play develops in this area of the county."