Elk Petroleum Ltd has successfully completed the acquisition of a 100% operated working interest in certain oil properties from a wholly-owned subsidiary of Devon Energy Inc. These properties are located immediately adjacent and contiguous to Elk’s Singleton Oil Field and CO2 Enhanced Oil Recovery Project in Banner County, Nebraska. The properties were acquired for an entire consideration of USD 100,000.
The Properties Acquired – The Singleton Oil Field and the Devon Oil Properties are located in the northeastern portion of the prolific Denver-Julesburg Basin which extends from north eastern Colorado into south eastern Wyoming and the western panhandle of Nebraska.
The properties acquired include: All of Devon’s oil and gas leasehold interests in Banner County, Nebraska covering 9,738 gross acres (5,987 net acres); Two oil exploration wells – one vertical well, Opis 1P and one horizontal well, Opis 1H – both of which have completed as oil producers; and All of the oil production, processing facilities, storage and oil truck load-out equipment.
All of the properties are essentially new with the leases first being acquired in 2012 and the Opis 1P well drilled and completed in early 2013 and the Opis 1H well drilled and completed in late 2013 with production facilities constructed shortly thereafter.