Prairie Operating Co. has exercised an option to purchase undeveloped oil and gas leases and acreage in the core of Denver-Julesburg (D-J) Basin.

Prairie Operating will purchase 20,328 net mineral acres in Weld County, Colorado, as part of an agreement made in May with Oklahoma’s Exok Inc., according to filings with the Securities and Exchange Commission.  

The acquisition includes 20,328 net mineral acres. Prairie Operating said the acquisition will be paid with $18 million cash and about $4 million in equity for total consideration of about $22 million.

In conjunction with executing the option, the company closed on a $20 million private investment in public equity (PIPE) offering.

On Aug. 21, Prairie Operating also announced the results of an independent, third-party evaluation of its non-producing position in Weld County.

The evaluation found possible reserves of approximately 285.3 MMboe and a PV-10 value of approximately $2.4 billion. The company said the evaluation doesn’t include hundreds of additional locations beyond an initial five-year program.

The reserves are supported by 412 qualified locations across the Niobrara and Codell formations. The evaluation estimated that the company’s reserves are made up of approximately 74% oil and liquids and 26% natural gas.