Recovery Energy (OTC:RECV) today announced that it has closed its previously announced acquisition of oil and gas leases on 8,060 net acres primarily located northwest of the prolific Silo field in Laramie County, Wyoming from Wapiti Oil & Gas, LLC. The $12.3-million purchase price was paid in a combination of cash and stock. As I write, shares of Recovery Energy had not traded and were bid at $3.50 per share. The company has a market cap of $178 million and a 52-week range between $0.25 and $4.00 per share.The acquisition increases Recovery Energy’s Chugwater acreage to approximately 14,400 contiguous gross acres, 12,200 net after accounting for a 2,200-net acre effect to its recently announced joint-venture drilling partnership.
Recovery Energy has filed for four horizontal well drilling permits on its Chugwater acreage, and is scheduled to commence its horizontal drilling program targeting the Niobrara oil shale formation there by early second quarter of 2011.
Recovery Energy is a Denver-based independent oil and gas exploration and production company focused on the Denver-Julesburg (DJ) Basin where it holds 134,000 net acres and management has more than 70 years’ experience.
For more information, please visit www.recoveryenergyco.com.
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