2010-10-06-2010-10-06

Entered JV on 10,500 net acres in McKenzie County, ND, and Richland County, MT, in exchange for drilling two earning wells.

Houston-based, privately held Ursa Resources Group LLC has entered a joint venture with an undisclosed seller to develop assets in the North Dakota and Montana Bakken formation.

The assets include 10,500 net acres (5,240 net to Ursa) in a proven part of the Bakken formation in McKenzie County, North Dakota and Richland County, Montana. Ursa's net leasehold in the Williston Basin now exceeds 100,000 net acres, almost all in Williams, McKenzie, and Billings counties, North Dakota, and Richland and Roosevelt counties, Montana.

Ursa will earn an interest in the acreage by drilling and completing two earning wells, one in Montana and one in North Dakota. The company expects both to be drilled in 2011.

Ursa president Matthew Steele says, "Our significant acreage position gives us a considerable competitive advantage. We believe the Bakken and Three Forks represent the premier oil resource plays in the United States. Our acquisition of over 100,000 net acres and controlling interest in over 90 drilling units is a real testament to the skill and quality of our team."

Ursa is funded by energy-focused global private-equity firm Denham Capital.