Enterprise Energy Resources Ltd. is pleased to announce that its wholly owned US subsidiary, Evolution Oil Group, LLC ("Evolution") has completed the acquisition, from an arm's length third party (the "Seller"), of approximately 46,695 net acres of oil and gas leases (the "Leases") in Cascade County, Montana. Evolution holds a 100% working interest in the Leases, the majority of which have a 10-year term.
As consideration for the Leases, Evolution will pay the Seller US$45 per net mineral acre for an aggregate purchase price of approximately US$2.1 million. Evolution has also agreed to pay the Seller the following contingent consideration:
1-a disposition bonus, payable in the event Evolution sells the Leases, in an amount equal to approximately 30% of the net profit realized by Evolution in connection with such disposition; and
2- a production bonus, payable should Evolution, as operator, commence commercial production of hydrocarbons on the lands covered by the Leases, in an amount equal to US$1.5 million.
"We are very pleased to have acquired a substantial acreage position on trend with recent, successful wells drilled into an emerging oil play known as the Southern Alberta Bakken. The play has similar characteristics to the well-established and highly successful Bakken oil play in North Dakota, including that of multiple target zones" commented Geoff Carrington, President & CEO of Enterprise.