2010 Niobrara Oil Lease Rush Draws Oil and Gas Companies From Around the U.S. to Northern Colorado, Where the Nation's Largest Block of Residential Building Lots Is Currently on the Market

DENVER, July 27 /PRNewswire/ -- Harrison Resource Corporation is offering a 9,200-lot, 4,587-acre $173 million land portfolio in the very area of Colorado where oil and gas companies from across the country are rushing to lease thousands of acres of land for as much as $3,200 an acre.

In early 2010, Houston-based EOG Resources drilled a horizontal oil well in Weld County's Niobrara Shale that produced an average of nearly 800 barrels of oil per day for 61 days. Since EOG's success, others have flocked the area to buy up land mineral leases, including Noble Energy, Gulfport Energy Corporation, Rex Energy Corporation, Slawson Exploration and Devon Energy.

"This is exciting for northern Colorado for many reasons," said Craig Harrison, president of Harrison Resource Company and broker of the $173 million deal. "New technology in drilling transformed the Bakken formation in North Dakota and Montana into a viable oil producer, energizing the entire area's economy. If the Niobrara produces like Bakken, it could have a similar impact on Weld County and surrounding areas."

Williston Basin, where Bakken is located, was discovered in the 1950s but it wasn't until 2008 that companies began horizontal drilling there, creating an explosion of interest in the area. It is one of the largest oil fields in the continental United States, and according to a 2008 assessment by the United States Geological Survey, holds 3.8 billion barrels of undiscovered oil. Historically, such oil activity leads to job creation and a rise in demand for housing and other infrastructure. Shortly after the 2008 Bakken boom, in fact, nearby areas experienced a housing shortage and rise in home prices.

"The buyer of our Northern Colorado portfolio will not only get this land portfolio for a fraction of its 2007 value of $400 million in a low-risk area ranked 10.4 out of 100 by the Private Mortgage Insurance U.S. Market Risk index, they'll do so at a time when oilmen are scooping up mineral leases as fast as they can," said Harrison, adding that the deal's projected IRR ranges between 20 and 30 percent. "Soon, there will be a great need for housing and development in this exact area. If Niobrara plays out like Bakken, the party that invests in our land deal will have made a wise investment."

The Northern Colorado real estate portfolio consists of 9,200 residential lots and 4,587 acres and is available for purchase as one lot or as five sub-portfolios:

1. Three active subdivisions: $39.25 million
2. Twelve residential mixed-use properties: $64.25 million
3. Two residential mixed-use properties: $21.9 million
4. Three commercial and industrial properties: $41.25 million
5. One commercial and retail property: $6.75 million

Learn more at http://northerncolorado.propertyarchive.com/.

About Harrison Resource Corporation

Harrison Resource Corporation (www.harrisonresource.com) is a land brokerage firm based in Loveland, Colorado. Founded in 1980, the company has closed 750 transactions worth $625 million.

SOURCE Harrison Resource Corporation