Forest Gate Energy Inc., Montreal, (Toronto Venture: FGE) plans to acquire a 50% interest in oil and gas properties in Utah from an unnamed privately held company based in Denver for $1.2 million.
The properties include at least eight drilling areas on 135,505 gross acres (37,264 net) characterized by shallow reservoirs. Deeper, higher-risk gas plays in the acquisition include Granite Wash, several carbonates and an over-pressured fractured shale.
The transaction would increase Forest Gate's land holding in the area to 256,505 gross acres (69,419 net).
Forest Gate's exclusive option for the licenses expires March 31, 2010.
Earlier this year, Forest Gate acquired 116,000 gross acres in Iron County, Utah, from Vanterra Energy Inc. for $390,000. It had previously acquired 5,000 gross acres in the area from Vanterra in exchange for drilling and completion costs, estimated at $1.19 million.
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