PetroTech, Pangean Energy Form JV In Bakken

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
29MM
Description

Entered into a JV contract to purchase mineral interests in North Dakota.

PetroTech Oil and Gas Inc. (OTC: PTOG) entered into a contract with Pangean Energy LLC to purchase mineral interests in leases located in the Bakken in North Dakota.

The acquisition price is US $28.8 million to be paid through a combination of cash, stock and interest in the development of the wells; which have no depth restrictions and include several other potential zones. The transaction is subject to final due diligence by the purchaser and legal title opinions, said Eddie Schilb, PetroTech’s president, in the release.

The leases consist of 16,000 acres under lease with an additional 14,000 acres under option.

The engineering report performed by Pinnacle Energy Services LLC, as of June 2012, reported that information was tight from the State of North Dakota but it had been reported that IP rates in the Bakken were between 2,000 barrels of oil per day and 3,500 barrels of oil per day with probable and possible reserves for the property of some 116.2 million barrels of oil.

Pangean Energy LLC is private company based on Bedford, Texas. PetroTech Oil and Gas Inc. is an energy property acquisition and services company based in Bedford, Texas.