By OGJ editors
HOUSTON, Jan. 4 -- Sun River Energy Inc., Wheat Ridge, Colo., will acquire private Raven Wing Resources Inc., which participates in four pending projects in the Sweetgrass arch of Montana, Powder River basin in Wyoming, and Utah Wasatch Plateau.
Consideration is $3.5 million cash and assumption of $360,000 in liabilities. Sun River plans to arrange financing through its established lender.
Several of the drillable opportunities in the Raven Wing portfolio are stepouts and infill locations near existing production. Sun River said it should be able to begin drilling several locations within 6 months of closing.
First to be developed is oil at 2,500 ft on 4,200 net acres on the Sweetgrass arch. The property could accommodate as many as 210 wells if fully developed on 20-acre spacing at a cost of $300,000/completed well.
The Powder River basin project involves $1 million wells at 8,500 ft on 1,900 net acres, with as many as 24 wells possible if fully developed on 80-acre spacing.
The Wasatch Plateau project targets several potential gas reservoirs as deep as 6,000 ft on 36,000 net acres. Cost is $500,000-$1.5 million/well depending on depth and completion process, and as many as 300 wells could be drilled.
Raven Wing doesn’t own land on the fourth opportunity, a field infill and extension concept in the Powder River basin.
