IFR... Int'l Frontier to buy 5,600 freehold acres in Montana
2011-07-28 07:13 MT - News Release
Mr. Pat Boswell reports
FRONTIER INCREASES ITS FEE ACREAGE POSITION IN NW MONTANA TO 22,680 ACRES
International Frontier Resources Corp. has entered into binding letter agreements with six vendors to purchase title to the vendors' oil and gas rights covering 5,600 freehold acres (more or less). Frontier has agreed to pay the vendors $186.33 per net acre for a total consideration of up to $1,043,448. The final purchase price will be determined by the number of net acres owned by the vendors upon completion of the company's title opinion.
The fee lands are located in the Blackfeet Reserve, Glacier county, northwest Montana, where Anschutz Exploration (private), Newfield Exploration (NFX) and Rosetta Resources (Rose) are currently conducting exploration, appraisal and development drilling programs. The drilling programs are designed to evaluate multiple stacked reservoirs within the overpressured Bakken petroleum system of the Southern Alberta basin. This emerging tight-rock, light-oil play extends from northwest Montana into southwest Alberta where companies are using horizontal drilling and multistage fracking technology to evaluate the play.
Upon closing the purchase, Frontier will have increased its fee acreage position from 17,080 acres to 22,680 acres (more or less) and increased its ownership of fee acreage in 42 townships to 51 townships (a township equals six square miles). To date there have been 34 wells licensed, or drilled, in townships where Frontier owns fee acreage; the wells are being drilled by Anschutz, Newfield and Rosetta.
The majority of the company's acreage is currently under lease to operators drilling in the Blackfeet Reserve; the leases reserve in favour of Frontier gross overriding royalties ranging from 12.50 per cent to 18 per cent. The operators' leases expire at various times over the period 2012 to 2016; to continue a lease beyond the expiry period, the operator is required to establish production from the lease. Frontier's fee lands do not expire.
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