Creston Resources to Acquire Additional Acreage in Uintah Basin
Creston Resources has signed a definitive Purchase Agreement with Mountain Oil & Gas, Inc. ("MOG") to acquire oil and gas leases located in the Uintah Basin of Utah. This acquisition would add approximately 8000 acres of oil and gas leases containing 19 wells to Creston's existing properties that reside in the same basin. Existing assets, which Creston holds through its wholly owned subsidiary Homeland Gas & Oil ("Homeland"), include 27 wells on a total of 9000 acres.
Looking forward, the acquisition of oil and gas lease acreage provides additional locations for future drilling while the well bores themselves, besides offering immediate increased production, are prime candidates for recompletions and perforations in potential pay zones that have never been entered before.
Additionally, Creston has acquired a workover rig directly into Homeland so that the company will be able to do its own fieldwork at cost. Through its own efforts, and in conjunction with the joint operations already underway, the company intends to increase production on 20 to 30 wells by the end of the fourth quarter of 2006.
The acquisition, which is expected to close pending the completion
of customary conditions, is scheduled to occur early in the first
quarter of 2006. Terms were not disclosed.
- 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)
Company: Mountain Oil and Gas more info
- Creston Resources to Acquire Additional Acreage in Uintah Basin (Dec 28)