Megawest acquires Devil's Basin play in Montana

MegaWest Energy Corp. agreed to acquire a stake in the Devil's Basin play in Montana, which is near the Devil's Basin field in Musselshell County, Mont.

By OGJ editors
HOUSTON, Aug. 7 -- MegaWest Energy Corp. agreed to acquire a stake in the Devil's Basin play in Montana, which is near the Devil's Basin field in Musselshell County, Mont.

MegaWest, which focuses primarily on heavy oil, notes the acreage being acquired involves light oil production. Upon completion of the acquisition, MegaWest will own 6,015 acres or 75% of the play.

Terms call for MegaWest to pay $150,000 cash and 100,000 shares. MegaWest also agreed to carry of its partner's 25% working interest cost for the first well. The name of the partner, a privately owned company, was not disclosed.

Production now is from vertical wells. MegaWest plans to test the play with a horizontal well.

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