To acquire 18.75% WI in a proposed drilling unit in McKenzie County; four locations have 474.8 MBOE proved reserves.
PetroShale Inc. (TSXV: PSH) finalized an agreement to acquire working interest in wells operated by EOG Resources Inc. (NYSE: EOG) in the Williston Basin for US$3.25 million, the Calgary-based company announced Jan. 15.
PetroShale will have a 18.75% working interest in a proposed drilling unit in McKenzie County, N.D. The acreage is being spaced for eight wells. Four of the locations has proved reserves of 474,800 barrels of oil equivalent (BOE).
This transaction is a continuation of PetroShale's strategy to selectively acquire acreage that offers highly economic upside potential.
The total purchase price includes 200,000 common shares issued at $1.34 per share. The company intends to use existing credit facilities and cash resources to fund the cash portion of the purchase price and anticipates the transaction will close before the end of January.