CENTENNIAL, CO–(Marketwired – December 28, 2016) – PetroShare Corp. (OTCQB: PRHR) (“PetroShare” or the “Company”), today announced it has closed the previously-announced Purchase and Sale Agreement with a third party (“Seller”) for producing vertical wells and associated leases totaling approximately 15,514 gross (11,218 net) acres located principally in Adams and Weld Counties, Colorado. The total purchase price was $5.1 Million in cash after adjustments for product inventory and suspense accounts. The Company’s strategic partner and lender, Providence Energy Operators, LLC, has purchased a 50% interest in the wells and oil and gas leases acquired by the Company. The Company paid $2.55 Million in cash for its 50% share of the acquisition. The acreage is currently held by production and the acquisition increased the Company’s net leasehold interest by more than 200% to approximately 8,000 net acres.
The acquisition includes approximately 3,500 gross (1,300 net) acres located within the Company’s Niobrara / Codell focus area in Adams County within the Southern Core portion of the Wattenberg Field in the DJ Basin of northeastern Colorado. The acquisition has potential for up to 60 (30 net) Niobrara and Codell standard and extended length horizontal wells.
The Company will add approximately 63 barrels of oil equivalent per day (31 BOE/D net to the Company’s interest) of production from 32 producing wells and approximately 12,500 gross (4,300 net) acres of leasehold with up to 40 identified conventional vertical well locations targeting the D and J Sands which are prevalent and can be highly productive across much of the DJ Basin. The Company believes that additional D and J Sand conventional locations can be delineated with modern 3D seismic and certain areas may have the potential to be developed with horizontal wellbores. PetroShare will serve as the operator of the vertical wells included in the acquisition.
About PetroShare Corp.
PetroShare Corp. is a domestic oil and natural gas exploration and development company that targets capital deployment opportunities in established unconventional resource plays. Its current focus is in the Niobrara/Codell formations and adjacent oil and gas producing zones in the Rocky Mountain region with specific targets in the Wattenberg field within the DJ Basin of northeast Colorado. For more information, visit www.PetroShareCorp.com