T-Rex Oil Inc. entered a letter of intent to purchase 16,100 net mineral acres in the Williston Basin for $7 million, the company said May 15.
The 36 leases are on undeveloped acreage in Daniels County, Mont., with access to the Bakken, Madison, Three Forks and Red River formations. The leases have a roughly-24-month life, with right to renew for three years, and an 80% net revenue interest.
T-Rex will pay for the acreage with cash, debt and equity. The transaction is scheduled to close in July.
"We are pleased to expand our oil and gas property portfolio to include properties in the Williston Basin. This opportunity will provide us with not only a foothold in the Bakken, but continues to advance our growth and business strategy," said CEO Don Walford,
T-Rex Oil Inc. is based in Broomfield, Colo.
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