DENVER, March 24, 2011 /PRNewswire/ -- EARTHSTONE ENERGY, INC. (Nasdaq : ESTE ) reported that it has acquired an interest in another producing well in Montana. The Onstad 22-14 is located in the Divide Field in Sheridan County. The well has been shut-in for over three years, but produced approximately 15 to 20 barrels of oil per day when it was running. Earthstone acquired a 25% working interest in the well for approximately $38,000. Because of water production, the well is economically marginal; the majority of purchased value lying in capital equipment and Bakken lease rights. The spacing unit associated with the well is 320 acres. The Company previously disclosed the purchase of five producing wells in Sheridan County in January 2011.
"We are pleased to announce the acquisition of what we believe is another under-managed property," commented Ray Singleton, President of Earthstone Energy, Inc. "If, as we expect, we can overcome water disposal issues, we believe we can restore this well to production. Furthermore, based on its location and other enhancements we are pursuing in the area, we believe the value of this well will become much more substantial, especially as the horizontal Bakken play develops in this area of the county."
ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is an independent oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area. Earthstone is currently traded on NASDAQ Capital Markets under the symbol ESTE. Information on Earthstone can be found at its web site: www.earthstoneenergy.com
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as "believe," "should," "may," "will," "anticipate," "expect," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding the future importance of newly acquired, proposed, drilled or recompleted wells, the future success of efforts to reduce water production, disposal costs and/or restoring production, acquire other properties in the area and utilize or monetize capital assets. Factors that could cause actual results to differ materially include availability of rigs and services, price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed for March 31, 2010. The Company disclaims any obligation to update forward-looking statements.
SOURCE Earthstone Energy, Inc.