Armada Oil Increases Niobrara Acreage
Armada Oil, Inc. announced an important 1,000+ net acre addition to its existing 25,000 acres under control. Strategically situated near existing infrastructure in Carbon County, Wyoming, the 26,000 acre project footprint marks Armada Oil's ongoing efforts to secure contiguous land and expand in a region where the emergence of new oil completion technologies has spurred heightened activity and growing interest. Armada Oil has a 100% working interest in the additional acreage.
"While the full potential of the liquids-rich Niobrara is still being discovered, numerous majors -- including Anadarko Petroleum, EGO Resources, Marathon Oil, and Noble Energy -- are now working to increase their acreage positions. I'm pleased that we have been among the first to arrive, secure a meaningful position, and undertake a quality technical program," explained Armada Oil President and CEO, James J. Cerna.
Today's news of expanded acreage follows on the heels of Armada Oil's recently announced plans to accelerate oil exploration in the Niobrara with a 3 dimensional (3-D) seismic survey of approximately 41.05 square miles (26,272 acres) in and around Southern Wyoming's Laramie and Hanna Basins. Armada Oil entered into a geophysical data acquisition agreement with Geokinetics USA, Inc. to undertake the work.
"This expansion and technical work demonstrates our serious commitment to pursuing the potential of the Niobrara, an unconventional play like the Bakken, Eagleford and others, that has the potential to make America energy independent. The advent of horizontal drilling with new completion techniques is still in its infancy in terms of unlocking unconventional resources," explained Mr. Cerna.
In addition to Armada Oil's ongoing efforts to expand and exploit its Niobrara acreage, management has undertaken plans to leverage producing assets in Louisiana by way of a recently proposed business combination with Mesa Energy Holdings, Inc.
Armada Oil and Mesa Energy announced last week that the companies have entered into a non-binding letter of intent in order to pursue a business combination. The closing of the transaction is subject to further due diligence, negotiation and execution of definitive agreements, as well as necessary consents and approvals. The Board of Directors of both Armada Oil and Mesa Energy have unanimously approved the key terms of the proposed transaction and have authorized their respective management to pursue the transaction.