CENTENNIAL, CO–(Marketwired – May 31, 2016) – PetroShare Corp. (OTCQB: PRHR) announced today that the Company has entered into a Purchase and Sale Agreement with a major area operator to acquire producing vertical wells and associated leases totaling approximately 4,850 gross and 2,200 net acres in Adams County, Colorado. A significant portion of the acreage is located within the Company’s Todd Creek Farms project area in Township 1 South, Range 67 West. All of the acreage is currently held by production. Closing of the acquisition is scheduled for the second quarter of 2016 and is subject to satisfaction of customary closing conditions, including title and environmental diligence.
If completed, this acquisition would immediately provide the Company with approximately 125 BOEPD of production from the wells. The acquisition would also allow for the potential drilling of up to 36 Niobrara and Codell one mile long horizontal wells, and includes eight (8) currently-approved horizontal well permits. The Company will own a substantial interest in this acreage acquisition and intends to be the operator. It is expected that the Company’s strategic partner will exercise its option to acquire 50% of the interest to be acquired by the Company.
The acreage is located in the southern core area of the Greater Wattenberg oil and gas field in the DJ Basin of Northeastern Colorado. Based on independent engineering estimates, the potential reserves associated with this anticipated acquisition would be a significant addition to the Company’s proven reserve base.
Stephen J. Foley, CEO of PetroShare, stated, “We are excited to have the opportunity to expand our asset base and development drilling inventory in this marquee resource play. The fact that the leases associated with this acquisition are held by production providing us flexibility as to when we choose to further develop the acreage, is important in this commodity price environment. We also acknowledge the support that we anticipate from our strategic partner, which allows us the opportunity to participate in this significant 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.
