WellStar Energy Corp. announced that the first well has been drilled and the second well has been spud on its anticipated primary non-operated joint venture (JV) in Dunn County, North Dakota.
The Company expects to have a 40 percent working interest in each of the wells upon completion of the acquisition from a private Colorado corporation (the "Vendor") of certain non-operated oil and gas properties consisting of approximately 18,271 gross (7,273 net) contiguous acres located in North Dakota (the "Assets") which will constitute a "fundamental acquisition" (the "Acquisition") for the Company under the policies of the TSX Venture Exchange (the "TSXV").
In addition, two wells have recently been drilled and completed in the Bakken formation on the Company's anticipated secondary joint venture lands, which are contiguous to the primary joint venture but have a different operating partner. The wells are currently producing from two drilling units in which the Company has a potential 12.497 and a 5.208 percent working interest. The Vendor, through consultation with the Company, participated in the FREDERICKS USA 43-26H well (the Fredericks Well).
The second well, GARY BELL USA 23-36H ("Gary Bell Well") was successfully drilled and completed. The Vendor, through consultation with the Company, went non-consent on the Gary Bell Well. The Company expects to have a 12.497 percent working interest in the Gary Bell Well upon closing of the Acquisition after a three hundred percent penalty is paid from production revenue. Both wells have been put on confidential well status.The same story is in the WSJ, April 18, 2013.
In addition, pursuant to the terms of the Amending Agreement, the purchase price for the Assets has been increased to US$51,600,000 from US$51,550,000.It looks like this is the company.
Wellstar Energy Corp. operates as an oil and gas company. It has an option to acquire non-operated oil and gas assets covering 7,273 net acres in North Dakota. The company was incorporated in 1985 and is headquartered in Vancouver, Canada.The company's website: http://www.wellstarenergy.com/s/Home.asp
Quick back of the envelope on this producing property: $51.6 million/7,273 net acres = $7,000/acre.
The wells (about a mile apart from each other):
- 24429, conf, MRO, Fredericks USA 43-26H, Wolf Bay (on the reservation), producing;
- 24309, conf, MRO, Gary Bell USA 23-36H, Wolf Bay (on the reservation), producing;