The acquisition also includes gas gathering facilities. Whiting funded the purchase price with borrowings under its existing bank credit facility.
The acquisition includes interests in seven wells producing from the Entrada sandstone formation at a depth of 11,500 feet, as well as 24 wells producing from shallower Wasatch and Dakota formations.
James Volker, chairman, president and CEO of Whiting Petroleum, said: We believe this is an excellent acquisition for Whiting and our shareholders in light of the $2.86 per million cubic feet of gas equivalent acquisition cost and the significant upside potential for reserve additions at the Flat Rock field.
We also expect the continued development planned for the Flat Rock field to increase our net production from the field by approximately 70% in 2009 and to double the current rate in 2010.
