SCOTTSDALE, Ariz., March 2, 2011 /PRNewswire/ -- American Standard Energy Corp. (the "Company") (OTC Bulletin Board: ASEN), announces that it has acquired 10,147.66 acres located within eight (8) counties of North Dakota (the "Bakken") from Geronimo Holding Corporation (the "Seller"). ASEN acquired the property for approximately $7,418,000 in cash and Company stock making the average price between $700 and $750 per acre, which is below the current market per-acre price for prolific Bakken minerals.
The acquisition represents the single largest Bakken acquisition to date for the Company and increases its Bakken holdings by more than 160% bringing its total land holdings in the Bakken to over 16,000 acres. The location of the acreage places the Company near or adjacent to signification operations within each of the counties represented in the acquisition including Mountrail, Williams, Southern Burke and McKenzie Counties.
The acquisition also significantly increases the Company's ability to expand beyond its current 93 plus gross wells in which it participates. There are currently three (3) additional wells in various stages of drilling within the acreage represented in this latest acquisition. This land acquisition also complements the Company's most recent acquisition of producing properties by allowing the Company to focus both on current revenue streams as well as long term growth.
Scott Feldhacker, CEO of American Standard Energy Corp. stated, "This is an exciting acquisition for our company. It provides us the opportunity to further increase our operational outlook and will provide growth in both our revenue and reserve outlook. Demonstrating the value of our industry relationships, this further proves our ability to acquire key leaseholds below current market prices. Strategically purchasing leaseholds around, under and within the development path of key operators such as Brigham, Continental, EOG, Whiting and Petro-Hunt further quantifies the value of our Bakken holdings."
About American Standard Energy Corp.
American Standard Energy Corp. is a non-operator oil and gas Exploration and Production (E & P) company. ASEN currently has holdings in North Dakota, Texas, Arkansas, Oklahoma, and New Mexico.
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
Andrew Wall, General Counsel
SOURCE American Standard Energy Corp.