PetroShare Corp. (OTC: PRHR) closed the purchase and sale agreement for about 15,514 gross (11,218 net) acres in the Denver-Julesburg Basin. The agreement with a third party had a $5.1 million cash purchase price, the company said Dec. 28.
The acreage is primarily in Adams and Weld counties, Colo.
Providence Energy Operators LLC, PetroShare’s strategic partner and lender, purchased a 50% interest in the acquired wells and oil and gas leases. PetroShare paid $2.55 Million in cash for its 50% share.
The acreage is currently HBP, and PetroShare’s net leasehold interest has increased to about 8,000 net acres—more than 200%.
There are about 3,500 gross (1,300 net) acres located in PetroShare’s Niobrara/Codell focus area in Adams County in the Wattenberg Field’s southern core. The acquisition has potential for up to 60 gross (30 net) Niobrara and Codell standard- and extended-length horizontal wells.
PetroShare said about 63 barrels of oil equivalent per day (boe/d) of production will be added from 32 producing wells. This amount is 31 boe/d net to interest. Also, about 12,500 gross (4,300 net) acres of leasehold with up to 40 identified conventional vertical well locations targeting the D and J Sands will be added.
Additional D and J Sand conventional locations can be delineated with modern 3-D seismic, and some areas could be developed with horizontal wellbores. PetroShare will operate the vertical wells included in the acquisition.
PetroShare Corp. is based in Denver.
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