Creston Resources Acquires Producing Wells in Uintah Basin
Creston Resources has completed the acquisition of four additional wells located in the Uintah Basin of Utah from a small independent oil company. In addition to the current daily production from these wells, this acquisition adds approximately 2,200 acres of oil and gas leases and the corresponding undeveloped offset locations. In total, Creston now holds interests in 50 wells with total lease holdings of just over 19,500 acres.
The new wells acquired presently average approximately 20-25 gross barrels of oil equivalent per day (BOE/d). The company believes that with recompletion work it can increase the daily production of these four wells to a range of 75-100 BOE/d through operations such as down-hole pump changes and increasing artificial lift system capacity. Daily production will continue while these recompletion plans are finalized and implemented. In addition, the newly acquired acreage offers potential offset drilling locations in the prolific La Point area of the Uintah Basin. Both the current production from the wells and the undeveloped reserves in the surrounding leases will be included in an analysis of the company's oil and gas reserves being conducted by the independent engineering firm Ryder Scott.
Under terms of the acquisition, Creston paid $250,000 in cash and
issued 500,000 shares of restricted common stock, in turn receiving a
100% working interest in the wells and the surrounding leases. The
cash portion of the purchase price may be subject to post-closing
adjustment based on a final apportionment of the benefits and
obligations associated with the acquired assets as of the closing
date. The company did not assume any indebtedness as part of the
transaction. Homeland Gas & Oil, a wholly owned subsidiary of the
company, will take over as operator of the acquired wells.
- Creston Resources Secures Funds for Uintah Program (Jul 18)
- Fellows Energy Completes $2.25 Million Financing (May 30)
- Creston Resources Acquires Producing Wells in Uintah Basin (May 02)