Bonanza Oil & Gas has entered into an agreement to purchase the North Grimes Property in Grimes and Brazos Counties, Texas, in exchange for 2,100,000 shares of Bonanza common stock.
The North Grimes lease consists of 1,500 acres in the Giddings Field and is offset on 3 sides by wells producing from multiple Formations drilled horizontally to a total depth of 12,000' to 14,000'. Production on these wells range from 1.5 million cubic feet per day to 5 million cubic feet per day. Further evaluation using subsurface geological studies and 3D Seismic Surveys confirms and qualifies these leases as a valuable addition to Bonanza's property and lease assets.
Bill Wiseman, President and CEO, said, "This property is exactly what we look for in a prospect, it has PUD locations and it's part of a large producing field. This lease is worth approximately $400 to $600 an acre and is a large enough project to attract partners who would participate with us in drilling and operating the field. We’re very pleased to have acquired this opportunity for our shareholders."
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