WellStar Completes the Purchase of Oil and Gas Assets Prospective for the Bakken/Three Forks Formation and Terminates Previously Announced Acquisition Agreementadmin
Vancouver, B.C., January 16, 2014 – WellStar Energy Corp. (TSX-V: WSE.H) (the "Company" or "WellStar"), announced today that it has acquired non-operated oil & gas assets located in North Dakota and Montana ("the Assets") in two separate transactions.
The Company purchased 240 net acres in Billings County, which equates to an 18.75% WI, in one drill spacing unit from the North Dakota Department of Trust Lands for US$126,068. On November 15, 2013, drill spacing unit operator Continental Resources Inc. spud the Snider 1-21H1 well targeting the Three Forks formation. The well is currently on "confidential" status and is awaiting completion operations.
In a second transaction, the company purchased 924 net acres within a 22,400 gross acre contiguous land package in Sheridan County Montana from Vaalco Energy (USA), Inc. for US$13,120. The area is prospective for the Bakken and Three Forks formations with 13 horizontal wells drilled nearby, 7 of which are contiguous to company leases.
The Company has engaged Netherland Sewell and Associates Inc., a qualified reserves evaluator, to prepare a NI 51-101 compliant technical report with respect to the Assets. Upon receipt of the technical report, if appropriate, management currently intends to file the appropriate documentation necessary for reactivation and graduation to Tier 2 of the TSX Venture Exchange. The listing of the Company’s shares is subject to a number of conditions and there can be no assurance that such listing will be completed. Trading in the Company’s securities should be considered highly speculative.
The Company’s president, Andrew H. Rees commented "This acquisition establishes WellStar as a non-operated working interest owner in the Bakken oil play with approximately 1,164 net acres. Management is excited to enter the Bakken oil play with this acquisition. Our model is to build WellStar’s production base through the drill bit and additional acquisitions as a pure play Bakken producer".
In addition, the Company announces that the purchase and sale agreement relating to the Company’s acquisition of approximately 429 net acres in North Dakota has terminated according to its terms (see news release dated November 28, 2013). The Company continues to negotiate potential alternative acquisitions with the vendor. The Company also announces that the previously announced convertible debenture financing in the aggregate principal amount of up to $1,500,000 has been cancelled.
For further information please contact Andrew H Rees at (604) 669-6463.
ON BEHALF OF THE BOARD
(signed) "Andrew H. Rees"
Andrew H. Rees
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.
Posted: January 16th, 2014 under ACCESSWIRE.