Denver-based US independent Recovery Energy has agreed to buy oil and gas leases from Wapiti Oil & Gas in the Denver-Julesburg basin (DJ) for $12.3 million.
Posted by Staff
The more than 8,000-net-acre acquisition in Laramie County, Wyoming, strengthens Recovery’s presence in the Niobrara shale play,expanding the company’s holdings in the area to about 14,400 contiguous gross acres.
The deal involving cash and stock is expected to close this week.
Recovery said it has applied for permits to drill four horizontal wells targeting the Niobrara oil shale. It plans to begin its horizontal drilling program early in the second quarter of this year.
Recovery also recently closed on a $1.9 million deal to acquire oil and gas leases from various private individuals in the Grover field, where the company has already drilled one vertical J sand well with more to come.
The deal includes about 1700 acres in Weld County, and about 6600 net acres in Goshen County, Wyoming.
“The acquisition in the Grover field complements our positions throughout the northern half of the DJ basin giving us significant exposure in what we believe will be both the matrix porosity and naturally fractured areas of the Niobrara Shale,” said chief executive Roger Parker.
The combined acquisitions bring Recovery’s DJ holdings to 134,000 net acres.