T-Rex Oil, Inc., an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil plays and with a focus on Rocky Mountain region, today announced that it had entered into a letter of intent to purchase 16,100 net mineral acres in the Williston Basin with access to the Madison, Bakken, Three Forks, and Red River Formations.
Located in Daniels County, Montana, the net acreage is comprised of 36 leases that have approximately a 24 month life with a net revenue interest of 80% with a right to renew for 3 years.
The Company intends to purchase the undeveloped acreage for a price of $7,000,000 through a combination of cash, debt and equity and expects to close on the purchase in July 2015, subject to satisfactory due diligence.
Note: this is in Montana. Daniel County is the "second Montana county" west of North Dakota, along the Canadian border. It is west of Sheridan County (Montana) which borders North Dakota's Divide County. It is northwest of Roosevelt County (Montana) directly west of Williston, which is north of Richland County, the main Bakken play in Montana.
At $7 million for 16,100 net mineral acres: about $450/acre.
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