GERRITY PURCHASES WATTENBERG LEASES
Gerrity Oil & Gas Corp., Denver, has completed a purchase of leases in Colorado's Wattenberg field holding 725 undrilled wellsites.
About 350 are classified as probable or possible drillsites.
The purchase in the Denver-Julesburg basin was made from Martin Exploration Management Co., Boulder, Colo., for $125 million.
The leases have about 400 producing wells, with proved reserves estimated at 7.1 million bbl of oil and 89.5 bcf of gas. Current production, mainly from Cretaceous Dakota, J Sand, Codell, Niobrara, Sussex, and Shannon, is about 1,700 b/d of oil and 30 MMcfd of gas.
Also covered in the trade are about 100 miles of pipeline and a gas processing agreement.
All of the leases are within 10 miles of Gerrity operations, the company noted. The company said earlier the acquisition would essentially double its size (OGJ, Dec. 21, 1992, p. 39).
Gerrity plans to finance the deal with cash from a recent equity offering and a $105 million loan.
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