AmeriWest to Gain Acreage at Geary Prospect
Ameriwest Energy Corp. has formally advised Muddy Mineral Exploration, LLC of Casper, Wyoming of its intent to exercise its right to purchase certain oil and gas mineral leases adjoining Ameriwest's recent Geary Prospect acquisition.
Muddy Mineral Exploration, LLC ("Muddy Mineral") has presented the highest bid in auction to the United States Department of the Interior's Bureau of Land Management for the purchase of a 10 year Federal mineral lease on approximately 240 acres of land mainly located within the Area of Mutual Interest ("AMI") identified as the Geary Prospect lands located in Natrona and Converse Counties, Wyoming.
Muddy Mineral had extended an offer of first right of refusal to Ameriwest on an 80% Net Revenue Interest ("NRI") basis subject to the successful issuance of the Federal lease. This offer has been accepted by Ameriwest and upon completion will expand its holding in the Geary Prospect to approximately 3,040 gross acres.
The Geary Prospect is located in the southwestern portion of the Powder River Basin with the main objective based on an up-dip continuation of one of the Dakota sand bars that has already produced in excess of 300,000 barrels of oil from 2 wells. In the immediate area of the Geary Prospect, millions of barrels of Dakota oil have been produced from fields such as; Big Muddy, Salt Creek, Cole Creek, South Cole Creek, Burke Ranch, Burke Ranch East, Glenrock Block A, Midway and Geary Dome.
Full details regarding the agreement will be submitted shortly to the Securities and Exchange Commission ("SEC") as part of the Company's Form 8-K regulatory filing disclosure.