2011-03-02-2011-02-25

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
10MM
Description

To acquire certain properties in WY, CO, KS & MT including 243 wells & 197 PUD plus associated pipeline infrastructre.

Arête Industries Inc., Westminster, Colo., (OTCPK: ARET) has renewed plans to purchase certain oil and gas properties in Wyoming, Colorado, Kansas, and Montana from DNR Oil & Gas Com. and Tindall Operating Co. for $10 million in cash and other consideration. The deal was originally announced in April 2009.

The assets consist of 243 wells, including 46 proved developed and producing wells and 197 PUDs. Some of the assets are connected to the TOP Gathering system in Campbell County, Wyoming, which Arête purchased in September of 2006. The pipeline was transporting approximately 900,000 cubic feet of gas per day as of April 2009.

The company is currently evaluating the pipeline operations on the properties to increase revenues. "We expect that the acquisition of these assets will be the start of our long term development plan for Arête," says Donald W. Prosser, chairman of Arête Industries.

The purchase will be financed with bank debt and loans from private sources. The deal is expected to close by March 14.